One of the findings is that the wealthiest Canadian families in their twenties have an average net worth of over $500,000—more than Canadian middle class families manage to save over a lifetime.
Among the study’s key findings:
- Middle class families in 2012 had under $10,000 in wealth in their twenties and those in their sixties accumulated $470,000 in wealth by the time they start looking toward retirement.
- In 2012, Canada’s most affluent families in their twenties had $540,000 in wealth and peaked in their sixties with $3.4 million in wealth—seven times more than middle class families in that age group.
- Wealth for the most affluent families doubled in real terms between 1999 and 2012. The net worth for those in their twenties went from $280,000 in 1999 to $540,000 in 2012. Those in their sixties saw wealth rise from $1.8 million in 1999 to $3.4 million in 2012.
- Percentage growth in wealth for the middle class was smaller in every age group in 2012. Dollar change in wealth for the middle was dwarfed by what happened for the most affluent.
- “The wealth gap has grown rapidly since 1999,” says Macdonald. “Wealthy Canadian families of all ages are worth twice as much as their counterparts were in 1999, with the exception of affluent thirtysomethings—their net worth grew by 33%. But even that more modest growth made those thirtysomethings millionaires in 2012.”
So in Canada, if you aspire to be wealthy, it is not easy and it seems unlikely that the tremendously well-educated middle class youth of today could overcome the half-a-million dollar head start that the wealthiest Canadian families enjoy in their twenties. This inequality, may be one reason why people are happy with the idea that we should tax the wealthy more. It is time to re-examine measures like the 50% lower tax rate on capital gains that may, in some small measure, slow this growing gap.
For the entire study go here (pdf file)