For Canadians, a TFSA can support retirement by growing investments tax-free, then funding emergencies, recreation, and income gaps without taxable withdrawals later.
A Canadian who turned 18 in 2009 has $109K of cumulative TFSA room, and maxed contributions earning avg. ~8% could reach $212K in 2026.
If contribution limits ↑$500 every 4 yr and avg. returns stayed near ~8%, cumulative contributions could hit $326K by age 60 under that scenario.
Withdrawals do not end TFSA flexibility: tax authorities add withdrawn amounts back to contribution room on January 1, helping Canadians reuse space strategically.
A ~4% withdrawal approach turns a $2M TFSA into ~$80K yearly, giving Canadians a practical benchmark for retirement planning alongside other income.
