In this article, we’re going to highlight the net worth brackets for 2022 in Canada based on various percentiles, and then a review of the top 1% of the wealth.
** As a reference, if you want to know how your net worth compares to other Canadians, you can use the net worth calculator which you can find on the following page: Net Worth Percentile Calculator for Canada Including 23 Wealth and Income Statistics
Coming to Canada’s top one percent wealthy family and the wealth distribution in 2022.
According to the PBO (Parliamentary Budget Officer) 2020 report, the top 1% of Canadian households hold 25.6% of total wealth in the country, and the top 0.5% of Canadians have 20.5% of the total wealth. What this means is that 1,8 million Canadians hold over 20% of Canadian wealth. What’s even more surprising is that just slightly over 37,000 Canadians hold over 5% of Canada’s wealth.
** if you want to know how to become a decamillionaire, you can read this article: How to Become a Decamillionaire, Grow your Net Worth to $10 Million, and Join the 1% Club
|Family Wealth Quantile||Share of Total Wealth||Number of People|
With regards to the wealth stats and the table below, what you will find particularly interesting is the jump required as you increase net worth from the 99% percentile to 99.5%, which has a jump of over $3 million, and then from 99.5 to 99.6% is $2 million. The higher up the percentile you go, the harder it is to achieve. For example, the jump from 99.8 to 99.9, which is 0.1% requires an additional $5 million.
Listed below, in the left column, you will find the percentile, and in the right column, you will find the Canadian dollar net worth required in order to reach that percentile.
|Net Worth Percentile||Net Worth|
**All dollar amounts quoted are in Canadian dollars.
Highlights of the PBO Report about Wealth Distribution In Canada 2021
- PBO has based the report on families with wealth above $3 million. The report’s main purpose is to estimate the top tail of Canada’s family wealth distribution.
- According to the report, the richest families in Canada have a fairly higher amount of wealth than recorded in the SFS.
- The updated HFD report shows that 24.8 percent of Canada’s total net worth is exclusively held by the top one percent of high-net-worth families of the country.
- The shared net worth of these top families has increased by 5 percent according to the SFS PUMF system from 1999 to 2019. This data corresponds with the Forbes list of billionaires of the same years.
- There are currently 160,600 families in Canada with an average net wealth of $6.3 million, which is significantly higher than 159,300 families in 2016.
- Additionally, there are 3 million families in Canada that have a net wealth of $1 million. These families are a part of the top 20% social group of the country.
- Around 78,400 families hold a net wealth of $10 Million+ with a 19.3 percent share of family net worth, according to the data collected in 2019.
- Only 1600 high net worth families belong to Canada’s top 0.01%, with an average net wealth of a massive $ 583 Billion.
- The magnitude of the increase in wealth is quite high compared to the previous reports that showed the percentage to be quite low.
A Tax System to Reduce Financial In-Equality
It is a hot debate if the rich should be taxed more to reduce financial inequality in this world. The wealth distribution in Canada is quite low, allowing the rich to get richer while the poor get poorer.
Unfortunately, the distribution of wealth is unfair worldwide. The top 2% people have accumulated a massive wealth which makes the lower class suffer in different ways.
According to finance critic Peter Julian, “With a fair tax system, we would be seeing a vastly different distribution of the nation’s wealth, a much more fair distribution.” The extra revenue earned by increasing the wealth tax could be used to provide a better healthcare system, easy transportation services, and tackle world hunger.
It will bring up more opportunities for the masses, making their lives a lot easier. He said that the Canadian government has not properly disclosed the statistics to hide the percentage. This tax inequality favors and benefits the wealthy over the common citizens, resulting in increased fortune for high-net-worth families.