Data regarding net worth has always been fascinating for me. Even though we’re not supposed to compare ourselves to others (and comparison to others is the thief of joy) we still like to do it anyway. When you find out the average savings by age in Canada, or that only a little over 400,000 Canadians have a net worth of more than $1,000,000 USD, you also get curious about the top 1 percent net worth in Canada.
The top 1% income in Canada and the top 1% net worth in Canada are not the same thing.
Sure, having a 1% income in Canada is difficult to achieve (and no doubt very impressive) but we know in our heart of hearts that income does not equate to wealth.
If you’re too busy spending money, buying a flashy Porsche Cayenne, wearing Moncler down jackets, having countless Louis Vuitton bags, investing in Bitcoin at the top, or generally just trying to impress the Joneses…. even with a $250,000 income it won’t go very far. Which, $250,000, by the way, is approximately a top 1% income in Canada.
Because of that, I like to look at net worth, in particular liquid net worth but that’s more difficult to achieve since much of Canadians’ net worth and wealth is tied to real estate (which is, illiquid).
This post will look at the top 1% net worth in Canada, the top 5% net worth in Canada, and the top 10% of net worth in Canada using Statistics Canada net worth data.
According to this Financial Post article:
- Less than 1% of Canadians have $1-5 Million USD in investable assets, considered high net worth
- Less than 0.1% or 30,000 Canadians have $5-30 million USD in investable assets, considered mid-tier millionaires
- More than $30 million USD in investable assets, considered ultra high net worth, with only 3300 Canadians who can claim this title as of 2015 (I’m sure it’s higher now)
What is Net Worth?
Net worth equals assets minus liabilities.
Assets are things like your primary residence, investment properties, equities, deposits in your high interest savings accounts.
Liabilities are things like mortgage debt, HELOC debt, car financing debt, credit card debt (money that you owe).
Here’s a step-by-step guide on how to calculate net worth.
I use Wealthica to check my portfolio and liquid net worth regularly (it’s free).
Cash flow is more important than net worth.
Top 1 Percent net worth in Canada
According to the Parliamentary Budget Officer, the updated High Net Worth Family Database (2019 data) shows that the top one percent of high-net-worth families in Canada holds 24.8 percent of the country’s total net wealth.
What’s the top 1 percent net worth in Canada? Well, the threshold top 1 percent net worth in Canada is $6,300,000 according to 2019 data.
That means according to 2019 data from Statistics Canada, the top 1% net worth Canadians have at least $6,300,000.
|Percentile of Household Wealth||Net worth Threshold||Share of total net wealth in Canada|
|Middle 20%||$100,000 to $1,000,000||25.1%|
|Bottom 40%||Under $100,000||1.1%|
The cut-off for the top one percent of family net wealth is $6.3 million. Projecting that to 2021 from the PBO, this would be about $7,300,000.
There are almost 162,000 families in Canada in that group, so there are 162,000 families in Canada that are in the top 1% of net worth in Canada with at least $7,300,000 in net worth (net worth equal to assets minus liabilities).
There are approximately 3 million families in Canada with net wealth above one million dollars (which is about the top 20% of net worth in Canada).
Collectively, these families (the top 20% of Canadians, those with $1,000,000 net worth) hold 73 percent of the total wealth in Canada.
Astonishing numbers, isn’t it.
In addition to being the 1% in net worth in Canada, those that meet the threshold for $7,300,000 also likely fall into having a HNW (high net worth), meaning having over $1,000,000 USD in liquid assets. Less than 1% of Canadians fall into this category (and fewer even have ultra high net worth in Canada).
Top 5 Percent Net Worth in Canada
What is the top 5% net worth in Canada?
The top 5 percent net worth in Canada is a threshold of $2,800,000 using the 2021 numbers from the PBO.
That means that if you have a household net worth of over $2,800,000 you are in the top 5% of all Canadians.
Over 800,000 other Canadian families share this designation with you.
These are still rich Canadians.
Top 10 Percent Net Worth in Canada
What is the top 10% of net worth in Canada?
The top 10 percent net worth in Canada is achieved with a threshold household net worth of $1,900,000 using the 2021 numbers.
If you have a household net worth of over $1,900,000 you are in the top 10% of Canadians, and over 1,600,000 other Canadian families share this status with you.
Average Canadian Net Worth at Retirement
What’s the average Canadian net worth at retirement?
Well you could extrapolate the typical retirement age of 65 years old and this would mean that the average retirement savings is around $283,000 for a household or economic family, using 2019 data.
The average RRSP savings by age in Canada is as follows:
|Age||Average RRSP Savings|
|Average RRSP Savings|
|35 to 44 years old||$90,900||$47,200|
|45 to 54 years old||$158,200||$118,200|
|55 to 64 years old||$244,500||$150,500|
|65 years and older||$283,000||$147,600|
As we know, RRSP isn’t the only retirement savings vehicle up Canadians’ sleeves.
Looking at it from another angle, and including things like the TFSA or pension savings and non-RRSP savings, the average savings at retirement age (assuming 65 as the typical retirement age), the average net worth at retirement is around $384,100.
AVERAGE SAVINGS BY AGE OF INDIVIDUAL CANADIANS IN 2019
|Age||Retirement Savings||Average RRSP, RRIF, LIRA||Average TFSA||Average Non-RRSP or Pension Savings||Average Savings|
|35 to 44 years old||$89,700||$47,200||$15,400||$36,200||$125,900|
|45 to 54 years old||$290,900||$118,200||$22,000||$59,600||$350,500|
|55 to 64 years old||$377,300||$150,500||$30,300||$69,200||$446,500|
|65 years and older||$272,100||$147,600||$40,100||$112,000||$384,100|
Average Canadian Net Worth
Finally, let’s look at the average Canadian net worth by age. This is from 2019 Statistics Canada Survey of Financial Security median net worth data.
|Age||Median net worth|
|35 to 44||$234,400|
|45 to 54||$521,100|
|55 to 64||$690,000|
|65 and older||$543,200|
So to summarize, and based on 2019 data, the:
- Top 1% net worth in Canada has $6,300,000 at minimum in net worth
- Top 5% net worth in Canada has $2,400,000 at minimum in net worth
- Top 10% net worth in Canada has $1,600,000 at minimum in net worth
What do you think of these numbers, do you think they fit the top 1 percent net worth in Canada?
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GYM is a 30 something millennial interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for blog updates, a free dividend yield spreadsheet, and the free Young Money Bootcamp eCourse.
2 thoughts on “Top 1 Percent Net Worth in Canada”
My earlier comment was mildly critical and it has been deleted.
@Biff- No name calling please, but thanks for the feedback.