“Am I financially on track?”
Raise your hand if you’ve ever asked yourself that question.
I know I have. All the freaking time.
That’s why I calculate my net worth every month, and benchmark it against my target retirement number.
That’s why I subscribe to other bloggers’ net worth updates, just to see how my net worth fares in comparison.
And that is also why I am sharing Statistics Canada’s latest (2016) data on the average Canadian’s net worth with all of you, so you can get a better sense of how your money is doing in the grand scheme of things.
Not sure what your current net worth is? Feel free to grab my net worth spreadsheet that will make calculating and tracking the growth of your net worth easy peasy.
Without further ado, here are the average and median net worths of Canadians in every age group:
Age Group Median Net Worth Average Net Worth
Under 35 Years 9,700 62,100
35 to 44 Years 76,000* 214,000
45 to 54 Years 88,000* 290,400
55 to 64 Years 227,800 505,500
65 Years and Older 277,000 493,400
* This figure is not as reliable as the rest of the table.
As you can see, this table has separate columns for average and median values.
- The median net worth marks the exact mid-point. Half of Canadians’ net worths are lower than the median and the other half’s net worths are higher than the median.
- The average net worth is the total of all net worths divided by population (or sample size).
Now let’s talk about what these numbers reveal about Canadians’ financial health.
The General Trends:
As expected, both median and average net worths increase (for the most part) with age. The older someone is, the more time they have had to save and invest, and let compound interest work its magic.
We also notice a small dip in net worth immediately following the traditional retirement age of 65. This is also completely normal, since most retirees no longer bring in a regular income from their 9-to-5, and subsist by drawing on their nest egg.
The Worrisome Parts:
The median net worths are worryingly low within every single age group.
Half of the country is entering retirement with a net worth of less than CA$227,800, which is hardly enough to provide for a comfortable 30-year-long retirement, when you factor in long-term care and increased medical expenses.
Additionally, if you’re a 30 year old with CA$10,000 to your name, you’re doing better than half of your peers.
It’s not so much that having a net worth of CA$10,000 at 30 is terrible, it’s just that I know we could collectively do so much better, if only we take our finances seriously a tad earlier in life.
Financial literacy is the name of the game.
And this is coming from someone who spent the golden years of wealth accumulation (my 20s) basking in consumerist bliss, and as a result, had to work twice as hard to get ahead of the curve.
Yup, I learned my lessons the hard way, so I launched this personal finance blog so others don’t make the same mistake of ignoring their finances until it’s almost too late.
Where We Go From Here:
Regardless, if you have surpassed the average or the median net worth figure of your age group, you have every reason to be proud. Keep up the good work!
If not, it’s not the end of the world. It might be tough, but it’s definitely possible to boost your finances at any age and retire wealthy.
Building your wealth is all about earning ambitiously, spending smartly, saving diligently, and investing wisely.
As long as you got these 4 things figured out, you’re in good shape.
Building your wealth is all about #earning ambitiously, #spending smartly, #saving diligently, and #investing wisely.
Earning ambitiously: The more you earn, the more options you have in life and with money. While I don’t advocate for chasing the biggest paycheck at the expense of your integrity, I am not oblivious to the fact that, all else being equal, a higher salary will get you to your wealth goals faster.
Spending smartly: Make sure your spending is aligned with your values and brings you long-lasting joy, and not dictated by the Joneses.
Saving diligently: A penny saved is worth two pennies earned. Setting money aside prevents you from going into debts on rainy days, and grants you the freedom of choice and financial security.
Investing wisely: Investing is the engine that turns your saved dollar bills into even more dollar bills, and not nearly as intimidating as it sounds.
No matter where you are on your financial journey, the mere fact that you’re reading a personal finance blog suggests that you’ve overcome the No. 1 hurdle to getting rich – desire, and that you’ve got what it takes to achieve your financial goals.
Last but not least, if you’re coupled up, please check out my post How Does Your Net Worth Compare With The Average Canadian Couple for more net worth goodies.
Is your net worth higher or lower than the national average (or median)? Please share with us in the comments below.