Most Canadians coming into their peak incomes years are leaving one of the crucial highly effective wealth-building instruments largely untapped. At age 50, retirement is not a distant idea. But the numbers counsel {that a} important alternative for tax-free progress stays on the sidelines.
In response to Statistics Canada’s 2023 contribution knowledge, the common Tax-Free Financial savings Account (TFSA) steadiness for Canadians aged 50 to 54 sits at roughly $30,200. Notably, the common unused contribution room for this age group is sort of $58,000.
A TFSA isn’t only a financial savings account. It’s a tax defend. Nonetheless, with almost $58,000 in common unused room, many Canadians at 50 have substantial capability to reposition belongings strategically.
At 50, buyers sometimes have 15 years till the standard retirement age of 65. However investing doesn’t cease at retirement. With Canadian life expectancy round 82 years, portfolios usually must help 30 extra years of progress and earnings.
In response to Blueprint Monetary’s analysis, the common TFSA steadiness reveals a transparent acceleration sample by the many years.
These aged 40 to 44 have a median of $17,604, whereas these aged 45 to 49 have $21,177. By ages 50 to 54, that determine jumps to $26,479, and for these 55 to 59, it climbs to $33,242.
The message is obvious. The 50s signify a essential interval when Canadians get critical about getting ready for retirement. The query turns into not whether or not to behave, however what to carry in that TFSA to maximise its tax-free progress potential.
Why high quality progress shares belong in your TFSA
That is the place the dialog shifts from averages to motion. In the event you’re sitting on unused TFSA room at 50, it is sensible to allocate a portion of your portfolio in the direction of high quality progress shares similar to Celestica (TSX:CLS). Valued at a market cap of virtually $43 billion, the Canadian tech inventory has greater than doubled shareholder returns prior to now yr.
Celestica reported distinctive This autumn 2025 outcomes, with income of $3.7 billion, up 44% year-over-year. For the total yr, income grew 28% to $12.4 billion, whereas adjusted earnings rose 56% to $6.05 per share. Extra importantly, the corporate raised its 2026 annual income outlook to $17 billion, representing 37% year-over-year progress.
What makes Celestica compelling for TFSA buyers is its publicity to the multi-year AI infrastructure increase. Celestica manufactures essential knowledge middle {hardware}, together with 800-gigabit networking switches and next-generation AI compute techniques for hyperscaler clients like Google.
Celestica CEO Rob Mionis famous that the corporate is experiencing “an unprecedented stage of demand supported by the sustained large-scale multiyear investments from our largest knowledge middle clients.”
Celestica is responding by growing capital expenditures to roughly $1 billion in 2026 to broaden capability in Texas and Thailand. These investments are designed to help accelerating progress not simply in 2026, however into 2027 and past.
Celestica CFO Mandeep Chawla indicated that the corporate now sees CCS (Connectivity and Cloud Options) phase progress of roughly $7 billion in 2027, up from earlier estimates of $4.5 billion. For TFSA buyers at 50, this represents the form of high quality progress story that may compound tax-free over the subsequent 15 to 30 years.
Celestica has maintained sturdy profitability, with adjusted working margins of seven.7% within the fourth quarter, the strongest efficiency in firm historical past. It generated $458 million in free money movement in 2025 whereas sustaining a wholesome steadiness sheet with minimal internet debt.
The takeaway for 50-year-old buyers
At 50, you’re shut sufficient to retirement to really feel urgency, however far sufficient away to nonetheless change the result.
With firms like Celestica positioned on the middle of transformative know-how tendencies, and with almost $58,000 in common unused contribution room, the chance to construct significant wealth on a tax-free foundation has by no means been extra compelling.
Each good choice made at 50 works more durable than the identical choice made in a taxable account. Progress and earnings contained in the TFSA are tax-free endlessly. Withdrawals don’t have an effect on authorities advantages. Which means fewer holdings, higher high quality, and belongings that may compound whereas additionally paying you to attend.
The query isn’t whether or not you may afford to maximise your TFSA at 50. It’s whether or not you may afford to not.