Low-income households ramp up their wealth creation
However, those with major incomes under the age of 35 saw their net worth decline for the first time since the pandemic began.
Fewer young Canadians bought a home and focused their attention on reducing debt (2.8% – higher than any other group) while saving cash and the value of their non-pension financial assets, including mutual funds (3.3%) reduced.
Meanwhile, the debt-to-income ratio of older Canadians was notable, rising 9 percentage points for those aged 45-54 (mortgage debt was the main driver) and 8 percentage points for those aged 65+.
The second report from Statistics Canada shows that household disposable income grew at a slower pace in 2021 for low-income households than for those with higher incomes.
Government aid measures pushed the disposable income of low-income earners to an average of $33,000 in 2020, with the highest earners reporting a disposable income of $169,300. These were year-on-year growth of 29% and 3%, respectively.