do you want to know if your tfsa savings are on the right track well then let's see how you compare to the National averages by age income and gender the average tfsa savings by age let's go over all the age ranges in Canada starting from 18 to 80 and above for Canadians under 20 the average tfsa balance is $3,300 which is surprisingly High given that it only includes 18 and 19y olds it's impressive that young people in this age group who likely have limited income from part-time jobs or allowances have managed to save anything at all as you move into your early 20s so from 20 to 24 the average balance jumps to about $6,500 by now most people have some form of stable income and are starting to make more regular contributions by the time you're in your late 20s or ages 25 to 29 the average balance Rises to about $1,000 at this stage people are becoming more financially stable often settling into careers and potentially beginning to think about long-term goals like buying a house once you hit your 30s your tfsa balance really starts to accelerate for those age 30 to 34 the average balance is around 14,000 and for those age 35 to 39 it rises further to $15,600 approximately this is a time when people are typically focusing on bigger financial goals like starting a family buying property or building up an emergency fund more disposable income often means bigger contributions to long-term savings accounts like their tfsas moving into your 40s the average balance for those age 40 to 44 is approximately $17,600 and for those age 45 to 49 it jumps to about $21,000 this is often a key period for Canadians to maximize their contributions as they enter their Peak earning years knowing that retirement is becoming more of a reality on the horizon in your 50s the growth in your tfsa really takes off Canadians aged 50 to 54 have an average balance of about $26,500 and for those age 55 to 59 the average jumps to about $33,000 this is a very critical time for Canadians as they get serious about preparing for retirement next up those aged 60 to 64 have an average balance of close to $40,000 reflecting Decades of compounding growth by the time they reach age 65 to 69 the average balance reaches about $45,000 many Canadians use their tfsas to cover retirement expenses with without worrying about the tax implications of withdrawals making it a key part of their retirement strategy this is something we spend a lot of time planning with our clients here at blueprint we like to think of the tfsa as a lever you can pull in retirement to control your income finally once Canadians are in their 70s and Beyond tfsa balances reach their highest levels for those aged 70 to 74 the average balance is approximately $49,000 and for those age 75 to 79 it climbs even further to almost $54,000 the highest average balances are seen in those 80 and over where the average is almost $ 56,600 so it's really surprising to me that the TFA balances don't decrease especially when people hit their 65 in over time periods this tells me that people on average do not draw down from their tfsas ever even in retirement so that is something that might be not optimal for tax planning and other reasons it's important to remember these are average balances which can be skewed by a few very large accounts median balances which better reflect what a typical person has saved weren't available but would likely be much lower than even these average numbers provided the main lesson here is clear though no matter where you are on your financial Journey starting early and contributing early and consistently to your tfsa can make a significant impact over time thanks to taxfree growth every bit of savings count think of your tfsa like a snowball rolling down a hill it starts small but with consistency in time it builds into something much larger next up is average tfsa savings by gender and age taking a look at this data women tend to save more than men in their tfsas at nearly every age starting very early among those under 20 Women's average balance is close to $4,000 compared to just around $33,000 for men this is especially surprising given that both groups are likely earning limited income at this age it suggests that women may be more inclined to start saving early and develop strong financial habits sooner as we move into the 20 to 24 age group the trend continues women save about $7,000 on average compared to about $6,000 for men the gender gap persists in the late 20s where Women's balance reaches about $1,264 while men's holds at around $10,700 however by the time canans hit their 30s the Gap almost closes with men slightly edging ahead in the 30 to 34 age group holding 13,9 120 compared to women's 13,716 this could be where the gender income gap begins to play a larger role in savings ability however as Canadians move through their 40s and 50s women begin to pull ahead once again in the 40 to 49 age group women hold an average of about $2,680 compared to $2,640 for men by the time they reach 50 to 54 women are leading with 27,000 while men have around 25,000 this could reflect a more conservative approach to spending and saving as well as a heightened focus on long-term Financial Security as Retirement approaches in their 60s the Gap remains with women age 60 to 64 holding about $4,240 compared to $ 39,18226 expectancy and a more cautious withdrawal strategy in retirement what's truly surprising to me though is that despite the well-known income gap that still exists in Canada where men earn an average of 36% more than women in 2022 men earning an average of 66,000 while women earn about 48,000 women still maintain higher average tfsa balances this could suggest that women are prioritizing savings and making strategic decisions with their money factors like conservative spending habits a focus on long-term security and lower risk Investments maybe driving these higher balances these Trends clearly demonstrate that how you save can often matter than how much you earn women are showing that with smart financial habits even those with lower incomes can build significant long-term wealth through Vehicles like the tfsa perhaps this isn't that surprising though considering us men do kind of seem to waste a lot of money on silly things so men if you want to catch up to the women in your life and realize the full potential of your tfsa I go into how to reach a million dollar tfsa in another video on this channel so check that out now next up is the average tfsa savings by income level when analyzing this data even low earners are making good use of their accounts Canadians earning between $1 and $4,999 per year have an average tfsa balance of close to $199,000 somehow which is surprisingly High given their extremely low income those earning $5,000 to $9,999 per year have $166,000 in their tfsas on average and for those earning $10,000 to $19,999 per year the estimated average TFA balance is $2,456 it's impressive that even at the lowest income levels Canadians are prioritizing their tfsas in the middle- income range those between 20,000 to $49,999 per year tfsa balances are pretty steady ranging from about $228,000 to about $30,000 and what's really interesting is is this is comparable to those earning $50,000 to $74,999 where the estimated average TFA balance is just shy of $30,000 as incomes rise tfsa balances increase significantly Canadians earning between 75,000 to $99,999 have average tfsa balances of about $32,000 while those in the 100,000 to about $150,000 range reach close to $36,000 top earners those making over over $150,000 and $250,000 see dramatic jumps with average balances of 46,0 63,000 respectively the most surprising part about this data is how similar the balances are between those earning $25,000 and $775,000 even though these income groups span a very wide range their average balances remain very close suggesting that many middle income Canadians are making the most of the tfsas despite having less disposable income this reveals how valuable tfsas are are for all income levels not just High earners here's a pro tip maximize your tfsa taxfree growth by reinvesting any dividends or interest earned directly back into the account how do use this tfsa data to boost your finances after digging through all this data here are the ways I see and suggest that it can help you the first way is to use this data to motivate your own savings compare your tfsa balances to averages by age gender and income for instance if you're age 30 to 34 the average TSA balance is close to 14,00 000 which grows to about 40,000 by age 60 use these benchmarks to evaluate where you stand and set realistic achievable savings goals to keep you motivated the second way is to start early to maximize compounding the earlier you start contributing the greater the impact of compound growth even a small tfsa balance in your 20s can grow substantially over time make contributing a habit no matter how small it's consistency that will lead to significant growth by the time you reach retirement and the Third Way is to plan for retirement with your tfsa tfsas aren't just for short-term savings goals use them as part of your overall retirement strategy as you can see Canadians in their 60s have a pretty high tfsa balance providing a valuable tax-free income Source in retirement start thinking long-term and aim to build your tfsa for future Financial Security next way is to build wealth regardless of income you don't need a high income to benefit from a tfsa Canadians earning between 25 to 30,000 maintain average balances of close to $30,000 focus on small consistent contrib R butions even lower earners can accumulate significant savings over time by just sticking with a game plan next is to make your tfsa central to your financial plan whether you earn $25,000 or $250,000 the tfsa is a very powerful tool for growing wealth High earners can shelter more money from taxes while middle-income Canadians can consistently build their savings prioritize your tfsa as a key component of your overall wealth building strategy focus on progress not comparison it's really easy to get caught up in how your saving stack up against others but the real success lies in your personal progress whether your balance is higher or lower than the average what truly counts is the consistent effort to build wealth every dollar saved move to closer to your financial goals if you want to take your tfsa and overall wealth building strategy to the next level subscribe for more expert advice and visit our website for personalized planning of services that can help you reach your financial goals with confidence