According to Canada Revenue Agency (CRA) statistics released in 2025 covering the 2023 contribution year, Canadians aged 50 to 54 held an average Tax-Free Savings Account (TFSA) fair market value of approximately $30,190. Honestly, that is not bad.
Generation X has faced its share of economic challenges over the years. This cohort entered the workforce during periods of economic uncertainty, lived through the dot-com crash, the global financial crisis, the COVID-19 pandemic, and, more recently, a surge in inflation and housing costs.
More importantly, that TFSA balance only tells part of the story. Many Canadians in this age group also have assets sitting elsewhere. Registered Retirement Savings Plans (RRSPs), workplace pension plans, home equity, non-registered investment accounts, and small business ownership can all contribute significantly to net worth but do not show up in TFSA statistics.
Still, there are good reasons to prioritize the TFSA whenever possible. Its combination of tax-free growth and tax-free withdrawals makes it one of the most flexible accounts available to Canadian investors. Pairing that flexibility with a diversified, low-cost exchange-traded fund (ETF) can create a powerful long-term wealth-building tool.
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Why the TFSA deserves priority
Personal finance is rarely one-size-fits-all, and contribution priorities should always depend on factors such as income level, tax bracket, pension coverage, and future retirement plans. That said, a general framework often looks something like this.
First, take advantage of any employer retirement matching program available. If your employer offers matching contributions, turning that down is usually leaving free money on the table.
After that, many Canadians should consider prioritizing their TFSA. The reason is flexibility. Unlike RRSP withdrawals, TFSA withdrawals are not taxable and do not affect eligibility for government benefits later in retirement.
Higher-income earners may still benefit from prioritizing an RRSP because of the immediate tax deduction. However, for many middle-income Canadians, the TFSA’s tax-free growth and withdrawal features make it an extremely attractive account.
Once TFSA room has been maximized, investors can decide whether additional savings should flow into RRSPs, non-registered accounts, mortgage prepayments, or other financial goals.
Why VGRO could be a good fit
For investors looking for a simple long-term TFSA holding, Vanguard Growth ETF Portfolio (TSX:VGRO) is worth considering. VGRO is an all-in-one asset allocation ETF that maintains a target allocation of roughly 80% equities and 20% fixed income.
Through a collection of underlying Vanguard funds, investors gain exposure to Canadian stocks, U.S. stocks, international developed markets, emerging markets, and global bonds. The portfolio automatically rebalances itself, meaning investors do not need to worry about maintaining target allocations or deciding which markets to buy and sell.
Cost is another advantage. Vanguard recently reduced the management fee on VGRO from 0.22% to 0.17%. For Canadians around age 50 who still have a decade or more until retirement, an 80/20 stock-and-bond mix can offer a reasonable balance between growth potential and risk management.
