What is The Average Net Worth By Age in Canada? (2024)

In recent years, Canadians have seen a significant increase in their net worth, thanks to rising housing prices and stock market growth.

According to Statistics Canada, the the average net worth in Canada stands at $738,200 while  median net worth of Canadian households has reached an all-time high of $329,900. This marks a significant improvement from 2016 when the average Canadian net worth was $708,900 and the median net worth was $312,500.

In this article, we’ll explore the average net worth by age in Canada and explain what this means for your personal finances. So, whether you’re in your 20s, 30s, 40s, or older, join us as we delve into the numbers and gain a better understanding of your financial position.

Key Takeaways

• Your net worth represents the value of all your assets (everything you own of value) minus the total of all your liabilities (the total amount you owe).
• The average net worth by age in Canada among all ages is $728,200, while the median household net worth for Canadian families is $329,000. 
• Individuals under 35 have the lowest average net worth of $48,800, while those aged 55 to 64 boast the highest median net worth of $690,000.
• Ontario residents hold the highest net worth in Canada overall, with a median net worth of $434,500.

Average Net Worth by Age in Canada

Your net worth is the total amount of what your assets are worth minus the liabilities (what you owe). Net worth is your total wealth, which is your assets. This can include high-value assets like properties and vehicles and investment accounts such as RRSPs and stocks.

The average Canadian net worth by age is $728,200. This average net worth accounts for all the net worths in Canada, including the extreme millionaires and the negative net worth in Canada. It considers every Canadian’s net worth and calculates the average net worth by age.

It is true that a person’s net worth increases with age. The average Canadian doesn’t reach their peak earning years until they’re well into their 40s or even 50s.

Canadians between the ages of 55 and 64 have the highest net worth by age in Canada. This is probably because adults within this age group are still actively employed, have either just paid off their mortgage or are close to it.

After 65, most Canadians have retired, their income has decreased, and they have begun to draw down their investments, hence the decrease in average net worth. This is also likely a good part of the reason that those who are 64 and older have a net worth not that far behind those younger than them.

If you aren’t sure where your net worth sits, one way to find out is to check out a net worth calculator.

Median Net Worth By Age in Canada

On the other hand, the median household net worth for Canadian families is $329,000.

This median net worth, also called median value, is the net worth that is in the middle. It only considers the median value, discarding the higher and lower values. It is the most accepted in Canada because it reflects the reality for most people. 

From the table above, it is clear that the highest net worth is from Canadians between the ages of 55 and 64. This is because Canadians within this age group are still actively employed and have either paid off their mortgage or are almost done with it.

Canadians above 64 years also have a high net worth, not far from those younger than them. While many Canadians in this age group may not be actively employed, many have paid off their mortgages, greatly increasing their net worth.

There is a also noticeable increase from the age category of 35 to 44, increasing by $185,600 from the previous age group. This is because many Canadian students tend to hold massive amounts of student debt in their 20s, affecting their net worth.

Most Canadians tend to raise their net worth with age as they advance in their careers, gain more experience, and receive higher pay rates.

Average Net Worth by Household in Canada

There has been a significant increase in the average Canadian net worth for households over the years. StatsCan shows that Canadians, regardless of their age group, have significantly increased median income and net worth between 1999 to 2016. Canadians were generally wealthier during that period.

Despite the global economic recession in 2008, the Canadian government introduced programs and policies in place that helped Canadians significantly protect and grow their wealth.

However, the same cannot be said of 2016 – 2019. Available data from StatsCan shows that Canadians have only grown their median income and overall average net worth marginally between 2016 and 2019.

Net Worth in Canada by Province

The median net worth also varies depending on where you live in Canada. While the average median net worth can be separated into age groups, it can also be decided by location.

Ontario has the highest net worth by province in Canada, followed closely by British Columbia because areas like Vancouver and Toronto are some of the big names (even places like Quebec City). Ordinarily, these metropolitan areas would be the best guess even without crunching the numbers, and the numbers confirm that they are.

Ontario has the highest population in Canada and some of the highest housing prices in Canada, so it’s no surprise that it has the highest median net worth in Canada by province.

Also, BC has some of the highest housing prices in Canada, which is no surprise that they have the second highest net worth by province.

How to Calculate Your Net Worth in Canada

Your net worth is the value of all your assets minus the total of all your liabilities at a given time. Net worth is a snapshot of your financial health at a specific time. It’s calculated by subtracting your liabilities (debts you owe) from your assets (things you own).

Simply put, Net Worth = Total Assets – Total Liability.

You have a negative net worth if you owe more than you own. You will have a positive net worth if you own more than you owe.

What is a Good Net Worth in Canada?

This is a common question in Canada but a difficult one to answer. That is because there is no one-size-fits-all answer to this question.

Whatever net worth makes you comfortable is good for you. Your net worth doesn’t determine how much money you have in your bank account. 

However, if you need guidance on a good net worth in Canada, look at the average net worth by age. If your current net worth is close to or higher than the average net worth for your age group, you are good to go.

Even if it isn’t close to the average net worth or below the average, that is also okay. Though it is great to have a positive net worth (your total assets are worth more than your total liabilities), you can also be happy with where you are financially or make some changes to improve your overall financial health.

What is the Net Worth of the Top 1% and 10% of Canadians?

Using the numbers from the Parliamentary Budget Officer, the updated data for 2019 shows that the top 1% of the high net-worth families in Canada hold about 24.8% of the country’s total wealth.

You must have a net worth of at least a million dollars to be considered a wealthy Canadian. Most wealthy Canadians live relatively normal lives. Their net worth is in their primary residence, investments and retirement packages.

Those truly wealthy have much more than $1 million in net worth. But this doesn’t mean that they are totally debt-free. It only means that their total property assets and other financial assets equal more than $1 million dollars, also considering their liabilities.

How To Increase Your Net Worth in Canada

If you are looking to increase your net worth, here are some suggestions that can help you achieve that. However, it’s important to understand that substantial changes won’t happen overnight.

Whether you make small or large financial changes, it will take time to increase your net worth. Apply these steps in your daily financial life, and you can be on your way to improving your financial health.

• Start A Business: Entrepreneurship can be a pathway to increasing your net worth. Starting a business, whether it’s a side hustle or a full-time venture, can generate additional income and create valuable assets that contribute to your overall net worth.
• Build Your Career: Investing in your education, skills, and professional development can lead to higher earning potential and career advancement opportunities. By continually improving your skills and seeking out new opportunities for growth, you can enhance your earning power and boost your net worth over time.
• Acquire Assets: One effective way to increase your net worth is by acquiring assets such as a home, stocks, or shares. Investing in multiple properties can also be a smart strategy, particularly if the value of your assets exceeds your debt. Additionally, owning properties can generate passive income and boost your overall earnings.
• Live Below Your Means: It is important to remember that by reducing unnecessary expenses and saving money, you increase your net worth and create a financial cushion to help you cope with unexpected changes in your income or expenses. This approach can help you avoid the stress of living paycheck to paycheck and provide you with a sense of security for the future.

Final Thoughts on Average Net Worth By Age in Canada

Understanding your net worth is essential to personal finance, regardless of your age or location in Canada. It can help you make informed decisions about your financial goals, investments, and overall wealth management. 

While the average and median net worth by age and location provide a helpful reference point, it’s crucial to remember that everyone’s financial situation is unique. By calculating your net worth regularly and seeking financial advice when necessary, you can take steps towards achieving your financial objectives and building a secure financial future.

Learning how to manage your finances early on will help you reach your financial goals sooner rather than later. Regardless of where you are, there’s no better time to start than today—so get started!