Freedom 55? How are investors currently performing on the average TFSA?

If you’re 55 and feel like your tax-free savings account (TFSA) should go further, you’re not alone. Canada Revenue Agency (CRA) data shows that TFSA holders aged 55 to 59 had an average TFSA fair market value of approximately $35,009 as of December 31, 2021. That’s an average among people who actually have a TFSA, not every Canadian, and large accounts can increase this number even further. Still, it’s a useful benchmark, and January is a great month to use it as a reset button.

Get started

Start by choosing what you want to do with this account. Some 55-year-olds want future monthly cash flow. Others want a larger pillow for travel, medical expenses or just for peace of mind. Choose one clear goal for the next twelve months, not for the next twelve years. A goal can be as simple as donating $200 a week, or filling the new TFSA room you receive in 2026. The victory is consistency, not a perfect plan.

Now turn that goal into a routine you can maintain when life gets busy. Automate contributions right after payday so you pay yourself first. If you’re self-employed, set up a fixed monthly transfer, like a mortgage payment, to your future self. Outside of the TFSA, keep a small emergency buffer so that unexpected expenses don’t force you to sell investments at a bad time.

Finally, simplify investing so you actually stick with it. A 55-year-old doesn’t have to chase the hottest topic. You need sustainable companies, reasonable prices and a plan that you can repeat. For many people, that means a core investment like a diversified exchange traded fund (ETF), plus a few high-quality Canadian stocks, as you can imagine. If you’re adding positions for extra income or growth, make sure they’re small enough that a tough year won’t damage your confidence.

ATD

Food Couche-Tard (TSX:ATD) may be suitable as a practical dividend stock for that kind of reset. It operates convenience stores and gas stations; therefore, it sells everyday items that people continue to buy in good times and bad. The appeal of a TFSA is that it can expand quietly through stable operations, disciplined management and a long history of growth through acquisitions and improvements. Not just hype.

When you read the earnings, focus on the parts that generate repeatable money. Look for steady trends in same-store merchandise, controlled spending, and a balance sheet that remains flexible. Fuel margins can vary from quarter to quarter, so one noisy period shouldn’t in itself change your position. What’s more important is whether the company generates cash, invests in stores and systems, and returns capital through dividends and buybacks, without taxing itself.

In terms of valuation, ATD is often priced as a quality compounder rather than a cyclical bargain. That’s good if you want stability, but dig further. A simple check is to compare current earnings figures and free cash flow strength with historical figures, and ask what needs to go well in the coming years for the price to make sense. If you buy for 10 years, a fair price can still work. If you buy for 12 months, the entry price is more important.

In short

The bottom line is that a TFSA reset at 55 is less about finding a magic stock and more about building momentum. ATD can be a sensible part of that, especially if you like companies that keep operating even when the economy is in turmoil. Meanwhile, you can still earn income through dividends, albeit for a small amount. Here’s what $35,000 could get you today.

Don’t make it your entire plan. Combine it with broad diversification, automate your contributions, and let January 2026 be the month you measure progress by action, not regret.