Ever wondered what the average net worth by age in Canada is? Well, we are here to tell you what it is and much more.
Net worth is the value of all the non-financial and financial assets owned by an individual or institution minus the value of all its outstanding liabilities. Your net worth is a reliable indicator of your general financial wellbeing.
In a lot of developed nations, it takes a very high level of wealth to make it into the top 1% depending on your age.
For example, to get into the top 1% in Canada if you are between 25 to 29 takes slightly over $412,000. However, someone who is between 65 to 69 takes slightly over $9,991,000 in 2022.
Stick around and we will tell you all you need to know about the averages and break down the numbers.
Average Net Worth by Age in Canada
Since the definition of the median is the value at the midpoint, I used the percentile of 50%. The data below is the median, by age, of wealth holders in Canada.
Age Median Net Worth Canada by Age
Age 25 to 29 $81,400.00
Age 30 to 34 $107,300.00
Age 35 to 39 $125,000.00
Age 40 to 44 $174,000.00
Age 45 to 49 $206,400.00
Age 50 to 54 $236,000.00
Age 55 to 59 $258,200.00
Age 60 to 64 $322,800.00
Age 65 to 69 $322,400.00
Age 70 to 74 $321,800.00
Age 75 to 79 $330,800.00
Age 80 Plus $372,000.00
Top 1% of Wealth by Age in Canada
Listed below are the top 1% of net worth by the different age groups in Canada.
The largest wealth by age group is for those in the 50 – 79-year group. Keep in mind, much younger
Canadians graduate from college or university with college debt, so it takes time to accumulate wealth post age 20.
You reach your peak wealth near the standard retirement age of 65, after which point the wealth slowly declines as the spending exceeds the wealth accumulation into the later retirement years.
Age Top 1% of Wealth by Age in Canada
Age 25 to 29 $405,736.00
Age 30 to 34 $811,472.00
Age 35 to 39 $1,622,944.80
Age 40 to 44 $2,434,417.20
Age 45 to 49 $3,651,625.80
Age 50 to 54 $4,868,834.40
Age 55 to 59 $6,491,779.20
Age 60 to 64 $8,114,724.00
Age 65 to 69 $9,737,668.00
Age 70 to 74 $8,114,724.00
Age 75 to 79 $6,491,779.20
Age 80 Plus $5,680,306.80
Average Net Worth by Age in Canada for Select Ages & Percentiles
Percentile Age 25 to 29 Age 30 to 34 Age 65 to 69 Age 80 Plus
10% -$38,000.00 -$24,300.00 $154,400.00 $166,400.00
50% $81,400.00 $107,300.00 $322,400.00 $372,000.00
90% $293,000.00 $324,500.00 $4,500,000.00 $3,100,000.00
95% $323,000.00 $350,000.00 $6,250,000.00 $3,975,000.00
99% $405,736.00 $811,472.00 $9,737,668.00 $5,680,306.80
99.90% $1,655,736.00 $2,811,472.00 $26,737,668.00 $21,680,306.
Average Net Worth by Age in Canada by Household
According to Statistics Canada (StatCan), Canada’s national statistical office, Canada’s median net worth figures for different age groups are as listed below.
The data was collected in 2019 and released in 2021 and continues to be the most recent and accurate statistics in Canada as of writing.
Age Median Net Worth
Under 35 $48,800
35 to 44 $234,400
45 to 54 $521,100
55 to 64 $690,000
65 and older $543,200
Average Net Worth by Age in Canada by Region
In Canada, net worth is highest in Ontario and British Columbia, respectively. In 2019, Ontario families reported a median net worth of $434,500 and British Columbians of $423,700.
Areas like Vancouver and Toronto are some of the big names in this context (even places like Quebec City). Ordinarily, these metropolitan areas would be the best guess even without crunching the numbers, and the numbers definitely confirm that they are.
The wealthiest city in Canada is Vancouver, with a median net worth of $521,500.
For the median net worth in Canadian provinces and cities, find them below (note: they are arranged in descending order):
Province Median Net Worth
Ontario $434,500
British Columbia $423,700
Saskatchewan $330,500
Alberta $317,300
Manitoba $295,700
Nova Scotia $257,900
Newfoundland $247,300
Quebec $237,800
Prince Edward Island $211,400
New Brunswick $185,000
Now let’s talk about the recent net worth-related trends and how they have affected individuals and families:
Seniors are More Financially Vulnerable in Comparison to the Late 1990s
In comparison with twenty years ago, the likelihood of senior citizens being free of debt is lower. However, their net worth was considerably on the high side in the year 2019.
Although 56.7% of senior-led families reported being debt-free in the latest study, this rate was down from 72.6% in 1999.
Lone Parent Families Have Lower Median Net Worth
Families with only one parent turned in a median net worth of $83,100 as of the year 2019 in particular. For context, this was lower than 20 percent the median net worth of couples who had kids at $435,700.
In addition, families with one parent had a lower likelihood to own their own home, own a vehicle, and possess pension (which is in contrast to couples who have kids).
It is worth mentioning that, well above 1 in 10 families led by seniors had a mortgage on their principal residence in the year 2019. This is a remarkable bump compared with the 6.6% rise in 1999.
Rent and Homeowners
Homeowners turned in a higher median net worth of $685,400 in comparison with those who rent at $24,000. This shows that renters who are getting close to retirement have lower net worth that those who possess homes.
Families With an Employer Pension Plan are Doing Well
Canadians have long known that they cannot rely solely on the Canada Pension Plan (CPP) to live off in retirement.
Unless you’re an incredible saver, employer-sponsored pension plans are necessary for building long-term wealth. This includes defined benefit pension plans and defined contribution pension plans.
What is The Average Net Worth by Age in Canada?
The average net worth by age in Canada is roughly $680,000.
What is Your Net Worth Used For?
Net worth is a snapshot of your financial health at a specific point in time. It’s calculated by subtracting your liabilities (debts you owe) from your assets (things you own).
Your net worth can be positive or negative, depending on whether your assets are greater than your liabilities.
A positive net worth indicates financial health, while a negative net worth can indicate poor financial health—though not always the case.
As an indicator of wealth, net worth on its own can be deceiving, because not all assets are equal. For example, home equity is given equal standing alongside liquid assets, like cash and stock investments.
Who has the stronger $500,000 net worth? The person with $400,000 of home equity and $100,000 of liquid investments, or $400,000 in cash and ETFs, and only $100,000 in home equity.
Average Net Worth Calculator for Canadians
Here’s an example of how you might calculate net worth for an imaginary Canadian couple:
Name: Tom and Debby Johnson
Residence: Ottawa
Family Income: $175,000
Children: Two
Assets Current Value
House $650,000
Vehicle #1 $33,000
Vehicle #2 (Lease) Nil
Company Pension (Tom) $135,000
RRSP (Debby) $65,000
TFSA (Tom) $25,000
TFSA (Debby) $28,000
RESPs $11,300
Chequing/Savings $8,500
Household items $53,000
Personal Effects $6,500
Term Life Ins – Tom Nil
Total Assets $1,015,300
Conclusion
The more net worth you have, the better off you are. The wealthiest families in Canada make hundreds of thousands of dollars per year.
While that doesn’t mean that it is impossible to reach a high level of net worth with less money, it certainly seems like the odds are stacked against you.
Learning how to manage your personal finances early on will help you reach your financial goals sooner rather than later.
I hope the financial picture that we’ve painted for you today has been helpful in some way.
Of course, everyone’s situation is different, and you will need to take many factors into account when building your own net worth in Canada.
Regardless of where you are today, however, there’s no better time to start than today—so get started!
FAQs
What Is Considered High Net Worth In Canada?
If your net worth is loftier than the median net worth for your age bracket, then you are thought to be doing better than half of those in your age bracket. This conclusion naturally equates to you having a high net worth.
There is also, however, an official term and definition for those with a large number of liquid assets: a high-net-worth individual (HNWI).
This formal term, usually used in the world of finance, is an easy way of referring to individuals who own liquid assets valued between $1 million and $5 million.
What If My Net Worth Is Less Than The Average?
Undoubtedly, the majority of us want more money. However, if your net worth at the moment is less than the median net worth for your age bracket, that is not a cause for alarm.
Keep in mind that the median indicates the central place of a data set. This simply implies that 50% of people will be below the median and 50% will be above the median, both sides split into halves.
It’s also important to remember that there is a lot more to life than money. If you’re feeling sad or depressed because of your financial situation, consider reaching out to a therapist or psychologist who can help you learn healthy coping skills.
