The median net worth of Canadian families has increased, partly due to an increase in financial assets.
According to Statistics Canada’s Survey on Financial Security, the median net worth of Canadian family units—two or more people or individuals—was $243,800 in 2012, up 44.5% from 2005 and almost 80% more than the 1999 median of $137,000, adjusted for inflation.
Median net worth was highest for family units where the person with the highest income was 55 to 64 years old ($533,600) in 2012. This was almost three times higher than for family units where the highest income recipient was 35 to 44 ($182,500). For senior family units, those where the highest income recipient was 65 or older, median net worth was lower as they begin to draw on their assets as they transition from the workforce ($460,700).
Among families of two or more persons, lone parent families had the lowest median net worth in 2012 ($37,000) and senior families had the highest median net worth ($650,400). Among unattached persons, seniors ($246,000) had a substantially higher median net worth compared with non-seniors ($22,700).
Assets held
The total value of assets held by Canadian family units in 2012 was $9.4 trillion, composed of financial assets (pension and non-pension), non-financial assets and equity in business. As in 1999 and 2005, the principal residence was the largest asset in 2012, representing one-third of the total value of assets. For those who owned their principal residence, the median reported value of their residence was $300,000 in 2012, up 83.2% from 1999 and 46.6% more than in 2005.
Following closely behind the principal residence were private pension assets, representing 30.1% of the total value of assets held by Canadian family units in 2012. These assets include employer pension plans, RRSPs and registered retirement income plans. About seven in 10 Canadian family units had private pension assets in 2012, the same as in 1999 and 2005. However, the median amount held increased to $116,700 in 2012, up from $65,500 in 1999 and $77,400 in 2005. This was due, in part, to the aging population.
Other real estate such as cottages, time-shares, rental properties and other commercial properties represented 9.9% of total assets held in 2012. About one in five Canadian family units owned these properties, with a median value of $180,000. The median value has more than doubled since 1999.
The survey also gives the first glimpse at investments in tax-free savings accounts (TFSAs), which were introduced in 2009. In 2012, 4.9 million family units held almost $66 billion of assets in these accounts. Although this represents a small portion of total assets (0.7%), one-third of family units had TFSAs. For those with TFSAs, the median value was $10,000.
Regional results
British Columbia reported the highest median net worth of family units at $344,000, more than double the median of those living in Newfoundland and Labrador ($167,900) and Prince Edward Island ($150,300). After B.C., family units living in Saskatchewan had the next highest median net worth at $271,400, followed closely by Alberta ($267,500) and Ontario ($265,700).
Comparing 1999 with 2012, median net worth in British Columbia more than doubled, rising from $150,700 in 1999 when the province ranked fourth nationally.
Family units living in Ontario had the largest share of total net worth in Canada, holding $3.1 trillion (38.8%) of Canada’s net worth in 2012. This share is in line with the proportion of the national total of family units residing in Ontario (37.4%). In contrast, family units living in B.C. held $1.4 trillion (17.0%) of Canada’s net worth, with 13.6% of family units living in the province.
Net worth distribution
One way of looking at the distribution of net worth is to divide family units into five groups, from lowest net worth to highest, with each quintile representing 20% of all family units. There were differences in both the median net worth among the quintiles and the magnitude of the change over time. Those in the lowest quintile had a median net worth of $1,100 in 2012, while those in the highest quintile had a median net worth of almost $1.4 million.
In terms of change, those in the lowest quintile saw a slight decrease in their median net worth, down from $1,300 in 1999. The family units in the top three quintiles saw increases of about 80% between 1999 and 2012. Differences in home ownership and private pension assets between quintiles help explain these changes.
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