The last few years have seen a significant increase in the average net worth of people living in Canada.
A study by Statistics Canada found that the typical Canadian household now has a median net worth of $329,900, while the average net worth in Canada is $738,200.
For the median Canadian net worth, this is an all-time high and an improvement over 2016’s figure of $312,500 and far higher than the $153,100 recorded in 1999.
And the same goes for the average Canadian net worth, which was $708,900 in 2016 and $463,000 in 2005.
This article will look into the net worth by age in Canada based on different sources and parameters.
Key Takeaways
- Your net worth is the value of all your assets (everything of value that you own) minus the total of all your liabilities (total amount you owe).
- The median net worth of Canadians typically grows with age. Those under 35 have the lowest average net worth of $48,800, and those aged 55 to 64 have the highest median net worth of $690,000.
- People in Ontario have the overall highest net worth in Canada, with their median net worth being $434,500.
Net Worth by Age in Canada
Something else you might have noticed is that Statistics Canada provides data for both median net worth and average net worth. It’s essential to know the difference between the two.
The primary difference between average and median is that “average” net worth accounts for all data values and therefore includes extreme values such as millionaires and those with negative net worths.
On the other hand, ”median” net worth only looks at the median value and discards higher and lower values. It better reflects the reality for most people.
Average net worth can be skewed by values that lie on the extreme side. Suppose you were to average the net worth of every individual in Canada; in that case, you’d have to include that of Changpeng Zhao, a billionaire with a net worth of several billion dollars.
That’s probably going to skew the numbers for a college student who’s 29 and struggling to pay off his or her student debt.
Therefore, median net worth gives a more accurate representation of the average person – the net worth values for people in the middle who represent most Canadians.
Median Net Worth by Age in Canada
Now that you have a better understanding of net worth and its calculation, let’s take a closer look at the median net worth of Canadian households and individuals across age groups.
The most recent 2019 data pulled from Statistics Canada shows:
| Age | Median Net Worth (1999) – CAD | Median Net Worth (2016) – CAD | Median Net Worth (2019) – CAD |
| Under 35 | 26,000 | 37,200 | 48,800 |
| 35 to 44 | 139,500 | 232,600 | 234,400 |
| 45 to 54 | 272,800 | 457,700 | 521,100 |
| 55 to 64 | 395,800 | 709,200 | 690,000 |
| 65 and older | 302,500 | 547,700 | 543,200 |
On average, Canadians in the 35 to 44 age group had a net worth of $243,400, while those between 45 and 54 had an average net worth of $521,100. The net worth for those aged 55 to 64 was higher at $690,000, and seniors aged 65 and over had a $543,200 net worth.
The most dramatic increase can be seen from the age category of 35 to 44, increasing by $185,600 from the previous age group.
This trend can probably be explained by the massive amounts of student debt that many Canadian students tend to hold in their 20s, as well as this being their lower-earning years.
However, most people tend to raise their net worth with age as they advance in their careers, gain more experience, and receive higher pay rates.
As you might have seen from this data, age significantly impacts net worth.
Most people start with little or no money in their 20s, but the typical Canadian will have accumulated significant wealth by the time they hit retirement age.
For the average Canadian family, net worth climbs steadily with age until retirement (usually around 65) and gradually falls as individuals eat away at their savings.
Average Net Worth by Age in Canada
For the average net worth, we break down the average numbers into economic families (households) and individuals.
| Age | Average Net Worth (Households) | Average Net Worth (Individuals) |
| Under 35 | $336,100 | $79,100 |
| 35 to 44 years old | $589,300 | $212,500 |
| 45 to 54 years old | $1,123,200 | $451,700 |
| 55 to 64 years old | $1,401,900 | $544,800 |
| 65 years and over | $1,298,800 | $589,700 |
Economic families account for a household including spouses/common-law partners, children, and relatives who are living at the same residence. Individuals refer to people who are not in an economic family.
As would be expected, the net worth of a household significantly exceeds that of individual persons.
Related: Best Stock Trading Apps in Canada.
Net Worth in Canada by Province
So how does median net worth stack up across the country? According to Stats Canada, here’s a breakdown of the numbers:
| Province | Median Net Worth (1999) – CAD | Median Net Worth (2016) – CAD | Median Net Worth (2019) – CAD |
| Newfoundland and Labrador | 94,400 | 224,300 | 247,300 |
| Prince Edward Island | 120,500 | 216,100 | 211,400 |
| Nova Scotia | 140,300 | 238,600 | 257,900 |
| New Brunswick | 118,700 | 167,800 | 185,000 |
| Quebec | 112,000 | 221,300 | 237,800 |
| Ontario | 187,500 | 387,300 | 434,500 |
| Manitoba | 151,800 | 339,800 | 295,700 |
| Saskatchewan | 188,100 | 310,900 | 330,500 |
| Alberta | 174,400 | 307,700 | 317,300 |
| British Columbia | 168,400 | 454,800 | 423,700 |
So who is more affluent, the average person in Quebec or Manitoba? The average person in B.C. or Saskatchewan?
The same report from StatsCan has the answers, and the results are not too surprising.
It turns out that people in Ontario have the overall highest net worth in Canada, followed by those in British Columbia.
For a long time, these two provinces have had strong economies and surging house prices, significantly raising their market value.
Saskatchewan comes in third place, followed closely by Alberta.
People in Alberta and Saskatchewan tend to have more debt than other Canadians, although Saskatchewan also has one of the lowest property values in the country.
Manitoba residents round out the top five wealthiest provinces per median net worth.
To sum it up, the statistics reveal the net worth of Canadians in each province has continued to increase steadily since 1999 and is projected to continue on the same trajectory for the coming years.
Here’s a quick breakdown of the statistics:
- The average Ontario household has the highest median net worth in Canada, with $434,500.
- The median New Brunswick household comes in last, with $185,000.
- British Columbia had the highest increase in median net worth since 1999, up by $255,300
- Households in Ontario have two times the net worth of those in New Brunswick.
Related: Best Investment Accounts in Canada.
What Are the Average and Median Net Worth for Seniors?
Many seniors look forward to retirement, but how much money will they have to enjoy their golden years?
According to the most recent data available from Stats Canada, the average net worth of a senior (aged 65+) in Canada was around $976,099.
Meanwhile, the median net worth of seniors came in at approximately $543,200 in 2019.
The median is the mid-point between high and low numbers – so half of the Canadian seniors had a higher net worth than $543,200, while half had a lower net worth.
It’s also important to note that these numbers include people with zero or negative net worths – so it’s not necessarily representative of average or middle-class Canadians.
To put that in perspective, the average net worth of a senior is about two times larger than the median net worth.
This suggests that a relatively small number of seniors have very high net worths, while many have much lower ones – hence the wide gap between average and median.
Canada has a vast senior population, and many of these individuals are still working well into their mid-60s as they transition from their careers to retirement.
This transition period can be pretty stressful for many Canadians. A plan to grow your wealth and become debt free is essential to avoid financial hardship during this time.
If you’re a Canadian retiree or soon-to-be retiree, it’s essential to take stock of your financial situation. It can be helpful to compare your net worth against that of other Canadians.
You can review the average and median net worth figures we mentioned earlier for Canadian seniors, then consider how these numbers may compare to yours.
Related: Best Seniors Bank Accounts in Canada.
Average Net Worth per Household in Canada
Statistics Canada released a more recent report in 2021, which provided data on the distribution (by household) of the net worth of Canadians in 2020.
The data offered essential insights into the distribution of wealth across individuals living in Canada.
Statistics Canada reported that the average household wealth among Canadians reached $817,378 in the fourth quarter of 2020 and up by $69,741 from the end of 2019.
The wealthiest households in Canada were in the age group of 55-64, with an average net worth of $1,335,146.
Households under the age of 35 had the least wealth, with an average household net worth of $231,036 at the end of quarter four in 2020.
Although the total net worth owned by the lower-income households was relatively small, their average wealth grew faster than other households in Canada at a rate of 23 percent.
Meanwhile, wealthier households increased their mortgage debt in 2020 to buy more real estate.
Furthermore, the household net for the highest earners was two times higher than the average earners for the fourth quarter of 2020.
It’s also good to know that the distribution of household net worth varies by region. Households with the highest earners across most provinces decreased their share of wealth over time.
For example, homes in Ontario increased their household net worth from 20.4% in 2010 to 21.5% in 2020.
What Is the Average Savings by Age in Canada?
Canadians’ average net savings has been trending upward since the mid-2000s. In general, the older we get, the higher the savings we should have.
So what is the average savings by age in Canada more recently?
One way to look at this is to consider the average savings per household using the age group of the primary income earner.
By focusing on savings or investments held in RRSP, TFSA, private pensions, and deposit accounts from this 2019 report, we have:
| RRSP | TFSA | Deposits | Private Pensions | Total | |
| Under 35 | $41,000 | $17,300 | $11,300 | $73,800 | $143,400 |
| 35-44 years | $82,100 | $20,800 | $14,900 | $192,600 | $310,400 |
| 45-54 years | $150,300 | $27,400 | $19,800 | $406,700 | $604,200 |
| 55-64 years | $216,900 | $43,500 | $32,700 | $567,500 | $860,600 |
| 65 years + | $224,000 | $51,300 | $43,000 | $405,600 | $723,900 |
These numbers are not representative of the net worth of these households as it doesn’t include non-registered investment accounts, other financial assets (like RESPs), some employer-sponsored pension plans, non-financial assets (e.g. real estate), etc.
It also does not consider the liabilities held by these households, which we need to deduct to calculate their net worth.
As expected, total average savings increase as Canadians age and start to drop again when they retire and begin withdrawing funds.
For insight into how much Canadians are savings annually
For insight into the average net savings for Canadians by age group, this report provides some answers:
| Age | Average Savings (2019) | Average Savings Quarter 1 (2020) | Average Savings Quarter 2 (2020) | Average Savings Quarter 3 (2020) |
| Under 35 | 7,220 | 10,628 | 32,480 | 20,072 |
| 35 to 44 | 14,963 | 20,428 | 40,708 | 28,216 |
| 45 to 54 | 11,324 | 16,552 | 43,056 | 29,092 |
| 55 to 64 | 668 | 3,060 | 23,868 | 15,728 |
| 65 and over | -16,918 | -15,184 | -5,016 | -10,356 |
This table shows that Canadians are putting away money while in their accumulation years, and in retirement, they are spending more than they save…which is to be expected.
Related: Canada’s Pension Plans Explained.
What Does Net Worth Mean?
Your net worth is essentially the difference between your assets and your liabilities.
If you are planning on building wealth and earning more in the future, it would be great to figure out how much your net worth compares to people aged 20, 30, 40, 50, 60, and so forth.
By doing so, you will undoubtedly get a better idea of where you stand and what you should aim for in the future.
What Are Assets and Liabilities?
Assets include everything of value that you own, such as:
- Cash in bank accounts
- Investments like stocks, bonds, mutual funds, and real estate
- Registered accounts like RRSPs and TFSAs
Liabilities include everything from mortgage payments and credit card debt to car loans and taxes that you owe. More examples include:
- Student loan debt
- Mortgages
- Outstanding expenses
Your net worth is essentially a snapshot of your financial health. If you own more than you owe, you have a positive net worth.
If you owe more than you own, you have a negative net worth.
How To Calculate Net Worth in Canada
Your net worth is the value of all your assets minus the total of all your liabilities.
The simple formula for net worth is Net Worth = Total Assets – Total Liabilities.
To calculate your net worth, add up your assets, then subtract your liabilities.
Tallying up assets is pretty straightforward. An investment can be anything with a monetary value, including cash, stocks, real estate, etc.
If you want to be precise, you can also list the market value of any collectibles or items that have value, such as rare coins, art, and more.
The liabilities section gets a little tricky because you have to know what qualifies as a liability.
The standard definition of liability is any debt that you have an obligation to pay back.
Don’t make the mistake of thinking only credit cards and car loans count toward this number; everything from borrowed money to mortgage payments falls into this category.
Even if you have enough money in your savings account to cover these payments now, they still count as liabilities in the calculation because you are making future payments with those funds.
You can simplify this process of calculating your net worth by using an online net worth calculator.
The net worth calculator from Sun Life is a powerful tool you can use to calculate your net worth quickly – simply plug in your numbers, and the software will take care of the rest.
Average Net Worth by Age in Canada: Conclusion
Generally, we can see that the median net worth by age in Canada increases with age. The only exception is in the age group under 35, with the lowest numbers, but there is a significant increase straight after.
This can be explained by the student debt many young Canadians hold and the fact that younger people are just starting out in the workforce.
While the average Canadian will undoubtedly have a hard time making ends meet when they are still in their 20s, they can rest assured that things will get much easier as they grow older and can increase their wealth by managing their money responsibly.
And the best way to build your net worth is to begin investing early.
We all know that time is money, and if you wait too long, you will miss out on valuable years of earnings that could have been used for investment.
Hopefully, this blog has helped you get an idea of what the average net worth of Canadians looks like by age.
FAQs
Anyone with a net worth of more than $1 million can be considered rich in Canada. 764,033 people, or 2% of the population, have a net worth between $1 million and $5 million.
According to the Global Wealth Databook by Credit Suisse, there were 1,681,969 millionaires in Canada at the end of 2021. 2020 alone saw about 246,000 new entrants to this list, and the same was projected for 2021 and 2022.
By median family income, Alberta is the wealthiest province in Canada. The average annual family income in Alberta was $103,720 in 2019.
The richest Canadians in the top 1% have a net worth of $9,263,011.45 CAD, according to The Kickass Entrepreneur.
How much you need to retire comfortably in Canada depends on where you live and how much you earn each year. A rule of thumb is you will need about 70 percent of your current salary to spend after your retirement. That means you would need about $70,000 per year after retirement if your salary were $100,000 yearly.
The average Canadian household had a net worth of $817,378 in the last quarter of 2020.
Related:
On average, Canadians in the 35 to 44 age group had a net worth of $243,400
This says average, but the chart above with the same number says median.
Which one is it ?