Canadian Wealth Report

[InTheBum]

Found this post online from Moneysense...thought you people might find it interesting. Feel free to comment...

From MoneySense:

The report reveals some fascinating trends in wealth accumulation. When MoneySense last presented our All-Canadian Wealth Report in our November 2003 issue, we divided all Canadians into five equal groups, ranging from the poorest to the wealthiest, and showed you how much net worth each group possessed. To be considered middle class you had to possess $65,900 to $169,000 in net worth. To qualify for the top group - to be among the richest 20% of Canadians - you had to be worth more than $380,600.

Fast-forward to 2007 and the numbers have shot up, up, up. The middle class now spans those with $92,400 to $244,300 in net worth. To be admitted to the top tier of net worth, you need more than $656,700 - nearly $300,000 more than was required four years ago. The last four years have been very good to many Canadians.

All-Canadian Wealth Report: Some numbers....

Canadian debt:

Debt levels are soaring among Canadian families. Measured as a percentage of assets, debt is particularly high among the young:

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Debt per $100 of

assets

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All families $14
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Families under 35 years of age $39
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Families 35 to 44 years old $24
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Families 45 to 54 years old $13
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Families 55 to 64 years old $7
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Families 65 years and over $2
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Are you paid enough?

Your total income (line 150 on your income tax return) is one indicator of how well you're doing financially. The median annual paycheque in Canada is $26,300.

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Income Rank Total income in 2006
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Lowest paid 20% Less than $9,600
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Next 20% $9,600 to $19,100
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Middle 20% $19,100 to $33,300
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Next 20% $33,000 to $56,500
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Best paid 20% More than $56,500
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[Lady Companion]

Properties and skewed tax reporting

The increase in net worth is largely due to the fact that property values have shot up in recent years. For the majority of people, their home is their largest tangible asset. More people than not only own their primary residence and don't own multiple properties which they are flipping to turn a profit. The net worth increase is really an unrealized gain. Though it appears that their net worth is actually much higher than in 2004, they really wouldn't be much richer than a few years ago if they tried to cash in by selling their home. Making another purchase, or even just renting will eventually absorb most if not all of the increase.

It's also worth noting that the chart is somewhat skewed with regards to yearly income. It is factoring in people who choose not to work (whether it is due to early retirement, being an at home parent, having a partner or parent who takes care of them...and dare I say a number of people in various industries who choose not to declare their income). These people are showing an annual income of 0 (or in some cases just a very low one which can be written off)and dragging the overall results down.