A typical 25-year-old Canadian likely does not have a giant pile tucked away yet, and that is normal. The most current CRA data — from the 2023 contribution year — shows Canadians aged 25 to 29 had an average TFSA fair market value of about $13,149.
The RRSP picture is harder to pin down precisely for that specific age, but Statistics Canada data from 2019 (the most recent available for RRSP balances by age) suggests Canadians under 35 had about $9,905 in RRSP savings on average. Neither number is life-changing on its own. The encouraging part is that at 25, time matters more than the starting balance. A smaller amount invested early can do far more work than a bigger amount invested late.
[Related: TFSA vs. RRSP: Which is Right for You?]
Source: Getty Images
Getting Started: TFSA First, Habit Always
For most 25-year-olds, the TFSA often makes the most sense as the first stop. It gives you flexibility, tax-free growth, and no tax bill if you need to pull money out later for a car, a home goal, or just life doing what life does. The RRSP is still valuable — especially if your income is climbing and you want the tax deduction — but the TFSA tends to be friendlier when you are still building your career. Statistics Canada’s 2023 data confirms Canadians who contributed only to a TFSA had a median contribution of $6,500, compared with $3,420 for RRSP-only contributors. That tells you plenty of people are already leaning that way.
Starting now matters because compounding is still the star of the show. Put away $250 a month and earn an average annual return of 8%, and after 10 years you would have roughly $45,700. Keep going for 20 years and that grows to around $147,000. Stretch it to 40 years and you are looking at about $838,000. That is the sort of math that makes boring consistency look surprisingly exciting.
There is also a practical side here. At 25, you do not need a perfect portfolio. You need a habit. Even $100 a month matters if it gets you into the market and keeps you there. A TFSA can hold growth stocks, dividend stocks, ETFs, or a mix of all three. The trick is not trying to outsmart every market swing — it is showing up, contributing regularly, and giving your money time to stop acting like money and start acting like employees.
Bank of Montreal: A Canadian Bank in Full Reset Mode
Bank of Montreal (TSX: BMO) is one of Canada’s biggest banks, with businesses in personal banking, wealth management, capital markets, and U.S. banking. Over the last year, the story has been about getting stronger after acquiring Bank of the West. Management has spent time cleaning up the balance sheet, improving loan quality, and getting the U.S. business into better shape — not flashy, but the kind of work that often sets up a company for better long-term returns.
Recent results suggest the effort is paying off. In first-quarter 2026, BMO reported adjusted net income of $2.55 billion and adjusted EPS of $3.48, up from $2.29 billion and $3.04 a year earlier. Provisions for credit losses fell to $746 million from $1.011 billion, with record revenue across all segments. Wealth management and capital markets were especially helpful, and the U.S. segment delivered 13% growth in adjusted net income. The stock hit a record high of $204.57 in February before pulling back to the current range near $182 — giving a more interesting entry point for long-term investors than the recent peak did.
BMO hosted an Investor Day on March 26, targeting a return on equity of more than 15% by 2028, which management framed as the next chapter of its growth and efficiency story.
At a recent price near $183, the market cap sits around $129 billion with a dividend yield near 3.6% and an annualized dividend of $6.68 per share. For a 25-year-old investor, BMO looks like a great starter investment because it offers stability and dividend growth alongside a business that can keep compounding for decades.
Bottom line
So, how much does a typical 25-year-old have in TFSA and RRSP accounts? Not a fortune, and that is perfectly fine. The real edge at 25 is not already being rich. It is having time. And right now, even $7,000 in BMO stock can bring in solid income.
A stock like BMO can help turn that time into something meaningful, especially if you start now, keep adding, and let the market do the heavy lifting for you.
