A real estate sign is pictured in Vancouver, B.C., on June, 12, 2018. The Canadian Real Estate Association is predicting that the national average home price will rise 9.1 per cent to $620,400 in 2021, in one of the most optimistic forecasts yet in the real estate sector. The real estate association says it expects home prices to either climb or remain steady in all regions across the country next year, citing economic improvements from the lows of the COVID-19 pandemic. THE CANADIAN PRESS Jonathan Hayward

Net worth of Canadians barely growing, according to new report

Just three out of 10 families reported being debt-free in 2019

Fewer Canadians will be debt-free during their retirement years, a new report suggests.

A survey of financial security among Canadians families finds fewer Canadians reported being debt-free during their retirement years, with the report noting that seniors were less likely to be debt-free during retirement than two decades ago.

Whereas almost 73 per cent of senior-led families reported being debt free in 1999, this rate has dropped to 56.7 per cent in 2019. About 12 per cent of senior-led families were also still paying a mortgage on their principal residence in 2019, compared with 6.6 per cent in 1999, as further evidence that the so-called Golden Years may not be so free of financial worries as many may believe. Almost 28 per cent of senior-led families reported also still owed a line of credit, carried a credit card balance from month to month or found themselves making installment payments on debt in 2019.

Looking at the broader picture, the median net worth of Canadian families was $329,900 in 2019 with families defined as two or more persons, as well as unattached individuals. Net worth appears as difference between family assets and debts. Notably, Canadians are finding it more difficult to increase their net worth.

According to the survey, the net worth of Canadian families rose 1.8 per cent per year from 2016 to 2019 on an annualized basis, a growth rate not large enough to be statistically significant.

RELATED: Canadian society is undergoing ‘rapid aging,’ says Statistics Canada

This point becomes clear when looking at rates of inflation, which outpaced the rise of net worth between 2016 and 2019 in 2018 (2.3 per cent) and 2019 (1.9 per cent). Accounting for inflation in 2016 (1.4 per cent) and 2017 (1.6), the average annual rate of inflation during this period was 1.8 per cent. In other words, inflation ate up any gains Canadians might have made.

By contrast, from 2012 to 2016, net worth grew 3.5 per cent per year. Corresponding inflation rates for 2012 (1.5 per cent), 2013 (0.9 per cent), 2014 (two per cent) and 2015 (1.1 per cent) were lower.

Housing remains the largest source of assets and the largest source of debt for Canadians. In 2019, just under 62 per cent of Canadian families reported a principal residence as an asset with a median value of $400,000, while just under 35 per cent reported holding a mortgage on their principal residence with a median outstanding value of $180,000.

Employer-sponsored pension plans (EPP) represented the second largest category of assets, as just over half of Canadian families reported having an EPP in 2019 with a median value of $164,900.

While about three out of 10 families reported being debt free in 2019, net worth varied by family type. Families who were renters, lone-parent families, younger families and unattached non-seniors reported lower net worth than others, with differences often significant.

Lone-parent families reported median net worth of $83,100 in 2019, while senior-led families reported the highest median net worth in 2019 with $840,900.


Do you have a story tip? Email: vnc.editorial@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Facebook.

wolfgang.depner@peninsulanewsreview.com

Finances

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Sidney Jon Blair said he would have died if a van and car had collided at the intersection of corner of Resthaven Drive and Brethour Avenue in early December. (Wolf Depner/News Staff)
Sidney senior urges motorists to slow down on Resthaven Drive

Jon Blair said community must become more pedestrian-friendly

Bob Joseph, author of 21 Things You May Not Know About the Indian Act, will be available for a Q&A through the Vancouver Island Regional Library Jan. 28. (Courtesy of Vancouver Island Regional Library)
Q&A on the Indian Act with Bob Joseph open to Greater Victoria residents

Bob Joseph is the author of 21 Things You May Not Know About the Indian Act

Tarpaulin-covered tents sit next to one of the ponds in Beacon Hill Park. The location of the Meegan community care tent has still not been nailed down, as Victoria council rejected the recommendation offered by city staff. (Don Descoteau/News Staff)
Location of care tent for Victoria’s Beacon Hill campers still not settled

Council roundly rejects Avalon Road site, road’s edge on Cook Street appears the top alternative

Coaches with the Juan de Fuca Minor Hockey association have had to get creative during their weekly practices to keep players interested and improving their skills without physical contact. (Damian Kowalewich photo)
West Shore minor hockey coach shares what it’s like on the ice without parents, fans

Most practices consist of relay races, goalie shots and passing drills

The Songhees Wellness Centre is a symbol of First Nations strength in the region. Representatives of local First Nations will soon play a greater role in decision making and governance relating to the Capital Regional District. (Courtesy Royal Roads University)
Capital Regional District to add First Nations representatives to advisory committees

Board approves bylaw, looks forward to Indigenous input on future decisions

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

A 17-year-old snowmobiler used his backcountry survival sense in preparation to spend the night on the mountain near 100 Mile House Saturday, Jan. 16, 2021 after getting lost. (South Cariboo Search and Rescue Facebook photo)
Teen praised for backcountry survival skills after getting lost in B.C.’s Cariboo mountains

“This young man did everything right after things went wrong.”

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

A passer by walks in High Park, in Toronto, Thursday, Jan. 14, 2021. This workweek will kick off with what’s fabled to be the most depressing day of the year, during one of the darkest eras in recent history. THE CANADIAN PRESS/Chris Young
‘Blue Monday’ getting you down? Exercise may be the cure, say experts

Many jurisdictions are tightening restrictions to curb soaring COVID-19 case counts

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
COVID-19: Provinces work on revised plans as Pfizer-BioNTech shipments to slow down

Anita Anand said she understands and shares Canadians’ concerns about the drug company’s decision

Tourists take photographs outside the British Columbia Legislature in Victoria, B.C., on Friday August 26, 2011. A coalition of British Columbia tourism industry groups is urging the provincial government to not pursue plans to ban domestic travel to fight the spread of COVID-19. THE CANADIAN PRESS/Darryl Dyck
B.C. travel ban will harm struggling tourism sector, says industry coalition

B.C. government would have to show evidence a travel ban is necessary

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

Everett Bumstead (centre) and his crew share a picture from a tree planting location in Sayward on Vancouver Island from when they were filming for ‘One Million Trees’ last year. Photo courtesy, Everett Bumstead.
The tree-planting life on Vancouver Island featured in new documentary

Everett Bumstead brings forth the technicalities, psychology and politics of the tree planting industry in his movie

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)

Most Read