{"id":702398,"date":"2026-07-20T23:25:08","date_gmt":"2026-07-20T23:25:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/702398\/"},"modified":"2026-07-20T23:25:08","modified_gmt":"2026-07-20T23:25:08","slug":"how-much-should-a-20-year-old-canadian-have-in-their-tfsa-to-retire-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/702398\/","title":{"rendered":"How Much Should a 20-Year-Old Canadian Have in Their TFSA to Retire?"},"content":{"rendered":"

The TFSA<\/a> is a great account for Canadians to save for retirement, and the sooner investors begin to use one, the better. For a 20-year-old Canadian\u2019s TFSA, that balance might not be huge yet, but that doesn\u2019t mean they are behind.<\/p>\n

A 20-year-old Canadian TFSA account still has decades to grow.<\/p>\n

With regular contributions and reinvested dividends, compounding<\/a> eventually can do the heavy lifting.<\/p>\n

For 2026, the TFSA contribution limit is $7,000. Directing those contributions to the right investments is what can help today\u2019s 20-year-old Canadian\u2019s TFSA become a six or seven-figure TFSA in a few decades.<\/p>\n

Here are three investments that could help make that happen.<\/p>\n

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\"woman<\/p>\n

Source: Getty Images<\/p>\n

Fortis shows why consistency matters<\/p>\n

Fortis (TSX:FTS<\/a>) provides a steady foundation for a 20-year-old Canadian\u2019s TFSA. The utility stock<\/a> owns regulated electric and gas operations across Canada, the United States, and the Caribbean.<\/p>\n

Those regulated businesses generate predictable earnings, allowing Fortis to invest consistently in growth while continuing to pay a quarterly dividend.<\/p>\n

As of the time of writing, Fortis offers a 3.1% dividend yield. That\u2019s not the most exciting yield on the market, but it\u2019s well-covered and continues to grow.<\/p>\n

In fact, Fortis has increased its dividend<\/a> annually for 52 consecutive years. Fortis is targeting 4% to 6% annual dividend growth to continue through the end of the decade. This makes the stock an appealing buy-and-forget option for a 20-year-old Canadian\u2019s TFSA.<\/p>\n

Enbridge can accelerate income growth<\/p>\n

Another option for younger investors is Enbridge (TSX:ENB<\/a>), an energy infrastructure giant that transports a significant portion of North America\u2019s crude oil and natural gas. Its critical pipeline network provides the company with a wide defensive moat and reliable revenue.<\/p>\n

Perhaps best of all, it\u2019s also not the only segment that Enbridge offers. The company also operates one of the largest natural gas utilities in North America, as well as a growing renewable energy business.<\/p>\n

This gives Enbridge a unique mix of necessity, defensive appeal, and growth potential. The last part is income, and Enbridge provides that too.<\/p>\n

As of the time of writing, Enbridge offers a quarterly dividend with a yield of 4.9%. Enbridge has also provided annual increases to that dividend for over 30 consecutive years.<\/p>\n

For the TFSA of a 20-year-old Canadian, Enbridge provides a growing source of income that can be reinvested inside the TFSA without creating a Canadian tax bill.<\/p>\n

At the current yield, an initial $3,000 investment in Enbridge would generate roughly $147 in annual dividends that could be reinvested into additional shares.<\/p>\n

Scotiabank offers long-term growth potential<\/p>\n

It would be difficult to compile a list of great investments for a 20-year-old Canadian\u2019s TFSA without mentioning at least one of Canada\u2019s big bank stocks. Bank of Nova Scotia (TSX:BNS<\/a>) is the option to add to that portfolio.<\/p>\n

Scotiabank operates a strong Canadian banking business while maintaining a presence across several international markets. That combination provides recurring domestic revenue and an additional source of long-term growth.<\/p>\n

The result is long-term growth potential along with one of the highest yields of the big banks.<\/p>\n

As of the time of writing, Scotiabank offers a 3.6% dividend yield. The bank also increased its quarterly dividend to $1.14 per share following its second-quarter 2026 results.<\/p>\n

Perhaps best of all, like the other companies mentioned above, Scotiabank has provided annual increases to that dividend for over a decade. In fact, the bank has paid dividends without interruption for nearly two centuries.<\/p>\n

This means that Scotiabank is a great addition to a 20-year-old Canadian\u2019s TFSA.<\/p>\n

How much should a 20-year-old Canadian have in their TFSA?<\/p>\n

There\u2019s no universal balance that a 20-year-old needs to have in their TFSA.<\/p>\n

For someone who turned 18 in 2024 and remained a Canadian resident, that means as much as $21,000 in accumulated contribution room by 2026.<\/p>\n

Ideally, the amount should be as much of their available contribution room that they can comfortably afford. This gives compounding the absolute maximum amount of time to be effective.<\/p>\n

The trio of options mentioned above offer growing dividends, stable businesses, defensive appeal and long-term growth potential.<\/p>\n

This makes them, in my opinion, great additions to any well-diversified<\/a>, long-term TFSA portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"The TFSA is a great account for Canadians to save for retirement, and the sooner investors begin to…\n","protected":false},"author":2,"featured_media":702399,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-702398","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/702398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=702398"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/702398\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/702399"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=702398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=702398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=702398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}