I always like to compare myself against others on how I’m doing financially. Don’t you?
Don’t you want to know that you’re at least in line with the rest of your peers as you traverse through life. Making sure that you have enough savings, that you’re investing in the right places and at least making the same amount of money? I always think about these things and I hope that I’m actually on the better side of what is considered average.
Here is what you may find extremely surprising. The average household saving rate in Canada dropped to 3.4% in the second quarter of 2018. The lowest savings rate occurred in 2015 when it bottomed out to only 0.90% and the average saving rate between 1981 and 2018 is 7.34%.
I am very surprised by these figures. And I actually had to take a second look at this and it is very much; true.
I know that I already save 9% through an employer pension fund, plus all the other savings I do with my net income… this can’t be true that we are only saving 3.4%!?
You’re probably starting to wonder what should my net worth be. A recent study published by Statistics Canada had the Canadian median household net worth valued at $295K in 2016. You may think that’s actually not that high. Canadians now owe $1.67 for every dollar they earn, so if you’re in Toronto then you’re probably sitting on a pretty hefty mortgage payment every month!
I know I am!
I’m a facts based kind of guy, so I’m not just going to spew out a random number on what your net worth should be without giving you some concrete details. So let’s double click on the StatsCan data to lay out what the average net worths are by age group. This will help us have a better understanding as to how we stack up against our peer groups.
From a National perspective, here is what the average Canadian household net worth looks like by age group. Keep in mind that this captures all you single folks out there and economic households combined together.
What if you live in Vancouver or Toronto? I live in Mississauga – just outside of Toronto, so I started to get curious about how do I compare to my peer group in the city that I actually live in!
For those of you living in Toronto:
For those of you living in Vancouver:
WOW! Do I need to move to Vancouver?? Look at the value of assets in that city. Net worths are driving up the National average!
I also took a look at some of the lines within the StatsCan data to compare the National averages to Vancouver and Toronto.
The biggest expense that we all have is the cost of the home that we either own or rent. Here’s some comparable nuggets hidden within the StatsCan data that will most likely blow your mind.
There you have it. These charts that I made by pulling the information out of StatsCan can easily help you understand what your net worth should be by your age. Take this all with a grain of salt if you’re above or below the average for your age group. It is a general guide to help you plan along the way.
One of the largest contributors to asset growth and net worth growth is real estate. Both the Toronto and Vancouver market have increased greatly over the last 10 years, driving significant growth to net worth.
I was unfortunately too young to get into the real estate game and I missed this big boom. Did you?
What should my net worth be?
What should my bet worth be in my 20’s
It’s really too early to worry about your net worth at this stage of the game. Get a career or job secured and start saving. Buy your first home as early as you can. I bought my first condo in Mississauga at the ripe age of 31. If you’re able to get in sooner, then do it! We have nothing but a time horizon ahead of us for major growth. As you can see with the information I provided above, StatsCan groups all ages below 35 together.
What should my bet worth be in my 30’s
The National average net worth in Canada for those that are in their 30’s is a large range. On the low end, you’ll probably see some around the $150,000 mark and on the high end you’r probably looking at the $300,000 mark. StatsCan provides an average for those age 35 to 44 of $471,300. As you progress through your career, you’ll start to earn more money and save more money while your assets start to appreciate thanks to compound interest, along with continued growth in real estate.
What should my bet worth be in my 40’s
As you approach your 40’s I’m sure the midlife crisis starts to set in right? Well if you’re like the average Canadian their net worth between 45 and 54 years old is around $789,400. On the low end, you’d probably want to be around $400,000 and the higher end would see you around $650,000. The StatsCan data has a little bit different age groupings, so I’m doing my best to average this out amongst the ages more specifically.
What should my bet worth be in my 50’s
I know that once I get into my fifty’s I’ll be thinking about retirement. Dreaming of white sand beaches and flying around in an old corvette to go grocery shopping! The StatsCan age range from 55 to 64 is $1.1M bucks. On the lower end, if you’re hitting the $700,000 mark and on the higher end you may see net worth in your 50s be about $900K then I think you’re doing a pretty darn good job.
What should my bet worth be in my 60’s
Last but not least, as you get to the official “retirement’ age of 60 – I hope to be done working for the man LONG before this time. If you’re around $1M bucks then I think you are in a pretty good position. Don’t forget about the compound interest for your investments, and maybe by this time you have a couple of properties that are driving some passive income for you. The official average net worth for those over 65 years is $845,600. Enjoy those pina colada on the beach next winter, I know that when I hit this age I certainly will be!
Our three-part Net Worth Series:
- What is Net Worth? What Does it Mean? Who Cares About It? Why You Should Track It
- How to Calculate Your Net Worth – and a friendly excel template to help!
- What should my Net Worth Be at My Age?