Canada’s wealth landscape is diverse, with individuals categorized based on their liquid assets into high-net-worth (HNW), very-high-net-worth (VHNW), and ultra-high-net-worth (UHNW) tiers. In addition to these classifications, the average net worth of Canadians varies significantly across age groups, reflecting different financial priorities and milestones. Below, we provide insights into these categories and the latest net worth statistics by age.
High-Net-Worth Categories in Canada
- High-Net-Worth Individuals (HNWIs):
Canadians with liquid assets between $1 million and $5 million USD fall into this category. Liquid assets include cash and investments but exclude real estate and illiquid holdings. - Very-High-Net-Worth Individuals (VHNWIs):
VHNWIs are individuals with liquid assets ranging from $5 million to $30 million USD. This group typically includes affluent entrepreneurs and senior executives. - Ultra-High-Net-Worth Individuals (UHNWIs):
UHNWIs are the wealthiest, with over $30 million USD in liquid assets. They often hold diversified global portfolios and significant investments in private equity and other ventures.
Median Net Worth by Age in Canada (2019 vs. 2023)
Recent data highlights the evolution of Canadians’ median net worth across different age groups, showcasing notable growth from 2019 to 2023:
- Under 35 Years
- 2019: $56,400 CAD
- 2023: $159,100 CAD
- This group is in the early stages of wealth building, focusing on savings, career development, and often tackling student debt.
- 35 to 44 Years
- 2019: $270,800 CAD
- 2023: $409,300 CAD
- At this stage, individuals typically experience significant growth due to career advancement and homeownership.
- 45 to 54 Years
- 2019: $602,000 CAD
- 2023: $675,800 CAD
- This group often achieves peak earning potential, with substantial investments and increased home equity contributing to wealth growth.
- 55 to 64 Years
- 2019: $797,000 CAD
- 2023: $873,400 CAD
- These years mark the culmination of decades of financial planning, with many Canadians preparing for retirement.
- 65 Years and Older
- 2019: $543,200 CAD
- 2023: Not available in the dataset.
Key Takeaways
The net worth of Canadians generally increases with age, peaking in the 55 to 64 bracket. However, the under-35 category has seen remarkable growth in recent years, driven by rising asset values and improved financial literacy. Understanding where you stand relative to these benchmarks is essential for effective financial planning.
Steps to Build Wealth in Canada
- Start Early: Leverage compounding through investments in stocks, bonds, and retirement accounts.
- Invest in Real Estate: Homeownership remains a significant driver of net worth growth in Canada.
- Diversify Investments: Protect your wealth by spreading investments across multiple asset classes.
- Seek Financial Advice: Consult financial advisors to optimize wealth strategies tailored to your goals.