What exactly is net worth? Well, your net worth is your total overall wealth, including assets and liabilities. This includes properties, vehicles and any other high-value assets that you own. Investment accounts like RRSPs and mutual funds are included in this, as well as other stocks that you may hold.
What’s Meant by Net Worth?
When we discuss someone’s net worth, we are essentially looking at their assets and liabilities. The total amount of what an individual’s assets are worth minus the liabilities (what they owe) is equal to their net worth. Because of this, people’s net worth varies throughout different stages of life.
Factors that can really impact your net worth include where you live, the current economic climate, whether you rent or own a home, your total mortgage balance, your form of employment, and many other factors. That being said, according to Statistics Canada, the average net worth in Canada across all ages is $ 738,200, while the median net worth of Canadian households is $519,700.
The median net worth, also known as the median value, is the net worth that’s right in the middle. This means this number has an equal number of people with net worths above and below it, unlike the average, which takes everyone’s net worth and calculates the average.
An example of a median net worth is $235,000. This would mean that an equal number of people in the area would have a net worth greater than and less than $235,000. Below is the Canadian median net worth data, broken down by age group.
| Age Range | Median Net Worth |
| Under 35 | $159,100 |
| 35-44 | $409,300 |
| 45-54 | $675,800 |
| 55-64 | $873,400 |
| 64+ | $738,900 |
As we can see above, the highest net worth is of those between the ages of 55 and 64. This is likely because adults in this age group are still employed and have either just paid off their mortgage or are close to doing so, which can create the wealth gap. This is often when business owners see the most success with their services after years of hard work. The profits are then reflected in their net worth.
This is also likely a good part of the reason those who are 64 and older have a net worth not that far behind that of those younger than them. While many people this age aren’t still actively employed, many have their mortgages paid off, which causes net worth growth and helps their net worth stack up to those who are younger.
What isn’t considered in these numbers are lone-parent families, the economic families from which these numbers come, and what part of Canada these numbers are seen in. There are so many different numbers that the median just shows where the center of the line is, and that most Canadians sit on either side of it. If you aren’t sure where your net worth sits, one way to find out is to check out a net worth calculator. Most financial institutions will have these on their website.
What is Considered a Good Net Worth in Canada?
This is a common question, but it is actually a pretty difficult one to determine. The individual really determines a good net worth in 2026. It’s whatever makes you comfortable. It is important to distinguish that net worth doesn’t determine how much money you have in the bank.
You can have money in a bank account, which could be your net worth, or you could have investments and own a home, which could also be your net worth. One you have immediate access to and can spend; the other you don’t. How you allocate your money and build your net worth is ultimately up to you, but as long as you are comfortable with your financial situation and spending habits, that is what matters.
That being said, if you are looking for some guidance on a good net worth, a good start is to look at the average net worth per age. If you are close to or higher than the average, it is a good indication that you are on the right track. If you aren’t, that’s okay too.
You really just want to be certain that you have a positive net worth, meaning your total assets are worth more than your total liabilities. You can then decide if you are happy with where you are at or if you want to make some changes to increase your net worth, which in turn improves your overall financial health. A financial advisor can help you compare each strategy and deep dive into how to help you make your millions.
Net Worth and Being Wealthy
To be considered wealthy in Canada, you should have a net worth of at least $1 million. That said, many Canadians considered wealthy lead relatively normal lives. Most of their net worth is in their primary residence, investments, retirement packages, or even a mix of the three. Those who are truly wealthy often have a net worth that is much higher than $1 million.
Keep in mind, though, that just because someone is considered wealthy and has a high net worth doesn’t necessarily mean that they are debt-free. It just means that their total property assets, as well as their other financial assets, exceed $1 million, even after their liabilities are factored in.
| A top percentage of Canadians | Average Net Worth |
| 1% | $9,737,000 |
| 2% | $2,500,000 |
| 5% | $980,000 |
| 10% | $840,000 |
| 50% | $482,000 |
Average Number of Canadians with a High Net Worth
Believe it or not, there are more people than you think who have a high net worth in Canada. Around 764,033 Canadians have a net worth of at least $1 million, and at least 91,823 of those have a net worth that sits between $5 million and $30 million. Around 10,395 Canadians have a net worth of around $30 million.
Although it is difficult to determine where these people live in Canada, it makes sense to assume they live in areas with significantly higher housing prices. Especially if these homes were purchased before housing prices skyrocketed. For many, this significantly increased their overall net worth.
For example, in West Vancouver, the average household worth is $4,536,269, whereas it is $1,869,495 in North Vancouver. You will also find similar differences in other provinces. Especially since housing prices have a huge impact on net worth. That being said, we should still look at the averages per province; just keep in mind that these are relative numbers.
What is the Average Net Worth Per Province in 2026?
Depending on where you live in Canada, the median net worth varies. While provincial medians for net worth are, on average, separated into current age groups, they are also determined by location. Keep in mind, though, these are not telling you what your net worth should be. Many people in the same age groups and across various locations have net worths that are much higher or lower than the median and the average. Take a look at the following table to see what the vast majority of Canadian families hold.
| Province | Median Net Worth |
| New Brunswick | $286,200 |
| PEI | $399,800 |
| Quebec | $371,000 |
| Newfoundland and Labrador | $333,500 |
| Nova Scotia | $354,600 |
| Manitoba | $386,300 |
| Alberta | $457,100 |
| Saskatchewan | $394,600 |
| BC | $773,500 |
| Ontario | $665,600 |
As you can see, Ontario seems to have the highest median net worth. This isn’t entirely surprising, considering that Ontario is Canada’s most populous province. It also has some of the highest housing prices in Canada. BC also has some of the highest housing prices, so it is really no surprise that it has the second-highest median net worth.
Net Worth and Retirement
Another really common question is whether your net worth in 2026 affects your retirement. In short, it depends on how your net worth is distributed, but having a high net worth isn’t going to negatively impact you. If most of your net worth is tied up in your home, the only way it would help you in retirement is to sell it.
If it is mostly in RRSPs and Investments, then you shouldn’t have to sell your home if you own it, and just start living off of that, as well as any other pensions or retirement savings that you may have. That being said, no matter what your net worth is, even if you have no assets, an employer-sponsored pension plan isn’t included in this calculation.
Many Canadians wonder how much they should have in their net worth when it comes to the time to retire. As mentioned above, there are retirement savings that aren’t included in this calculation. The average Canadian’s net worth at retirement age is just over $500,000. Is this enough?
Can this amount actually be used when you retire? What about two million? In reality, either of these amounts could be enough depending on how the assets are distributed, how much is in retirement funds, and whether you have an outside pension. The deciding factors are your yearly expenses, your retirement age, and how long you expect the money to last. Ultimately, what matters is what you have set aside for retirement, not your total net worth.
For example, say your retirement fund holds $750,000. You no longer have a mortgage, so your house is also an asset you can use as needed for any reason. Your total yearly expenses come to around $40,000. Based on these calculations, your retirement funds would last 18 years and 8 months. However, if your yearly expenses are only $20,000, this amount would last 37 years and 4 months.
As you can see, the rough amount needed to retire depends on your financial situation. That being said, the total net worth didn’t even apply in this scenario. The only financial aspects we considered were annual expenses and retirement savings.
This is because we assumed the house would be kept, and the home’s market value wasn’t being assessed. That is always something that can be tapped with a home equity loan or by downsizing, so you don’t have to worry about paying it back.
Ways to Increase Your Net Worth
Is your net worth lower than the Canadian average in 2026, or are you just looking to increase it? Do not worry; there are plenty of ways to do that. The key to this, though, is understanding that substantial increases won’t happen overnight. Increasing your overall net worth will take time, whether you make small or large financial changes.
Budgeting
A good way to start taking control over your financial health and to increase your net worth is to create a budget. Cutting back on things that aren’t needed or reducing expenses and putting money into investments or a savings account also increases your net worth.
Acquire Assets
One of the most common ways a person acquires assets is by purchasing a home. You can also acquire assets by purchasing stocks or shares. Keep in mind, you can also invest in more than one property. If you owe less than what the assets are worth, these contribute to your net worth as well. Owning properties can also increase your income by creating a passive income stream.
Live Below Your Means
One concept many people have trouble with is that just because you can afford something doesn’t mean that you should. Not only does this allow you to save more money, but if your financial situation ever changes for reasons beyond your control, then you don’t have to dramatically change your lifestyle. Living paycheck to paycheck can be stressful, so creating a safety net not only increases your net worth but also reduces your stress levels and prepares you for the future.
Reduce Your Debts
When it comes to net worth, debts are considered liabilities that reduce your net worth. In some cases, they can even cause you to have a negative net worth. Keeping up on these debts and paying them off is extremely beneficial to your net worth. This process can also take time, but even small amounts can make a huge difference.
For some people, the easiest way to pay off their debts is to consolidate everything into one monthly payment, then put extra money on that one payment when they have it available. Others choose to start with the smallest amount and pay it off, then keep going from there. Whatever method you choose, reducing your liability is key to your net worth.
Income and Net Worth
When you’re determining your net worth, it’s important to remember that your income doesn’t dictate your net worth. Many lower-income households have a high net worth. While wealthy households usually have high net worth, most of the wealthiest households also have high incomes.
The reason that your income level doesn’t affect your net worth is that your net worth is driven largely by the assets and funds you have saved. For this reason, real estate’s role in your net worth is going to be much higher. This is the same with other forms of investing.
How Do You Calculate Your Net Worth?
When you’re looking to calculate your net worth, you can do so with the simple formula of the total of your assets minus the total of your liabilities. To find your total assets, you’re going to add up the total value of everything you own, which includes:
- Cash
- Investments
- Property
Once you have that, you’re going to subtract everything you owe, including:
- Mortgages
- Loans
- Credit card debt
For example, say you own a home worth $500,000, have $100,000 in investments, and $20,000 in savings; your total assets are $620,000. If you have $200,000 owing on the home, a $10,000 loan and $5,000 in credit card debt, then your liabilities are $215,000. This would make your net worth $405,000.
Net Worth By Age in Canada Vs. The US
While net worths by age are similar in both Canada and the US, they differ slightly. Here’s a look at the differences.
| Age | Net Worth in Canada | Net Worth in the US |
| 55-64 | $873,100 | $1.57 Million |
| 45-54 | $675,800 | $975,800 |
| 35-44 | $409,300 | $549,600 |
| Under 35 | $159,100 | $183.500 |
Why Do Millennials Have a Lower Net Worth Than Baby Boomers?
The biggest reason millennials have a lower net worth than boomers and Gen Xers in 2026, after inflation is accounted for, is that they haven’t had as much time in the workforce. Boomers have had more time to build their home equity, pay off their mortgage principal, and collect more appreciating and depreciating assets.
That said, millennials do have a higher net worth than boomers did at their age. This means that by the time millennials are the age boomers are now, they’ll have a much higher net worth. Those in Generation Z could have even more.
How Inheritance Impacts Net Worth
An inheritance can increase your net worth by boosting your liquid net worth and liquid assets, and it can also affect your asset allocation. It can even decrease your liabilities by paying off your consumer debts, such as:
- Credit card balances
- Lines of credit
- Student loan debt
It can even be used to decrease your ammortization.
Since family wealth distribution contributes significantly to Canadian household wealth, it’s reflected in many household economic accounts. These are then tracked in Statistics Canada’s Survey of Financial Security.
What Counts as Assets Vs. Liability?
The differences between assets and liabilities are pretty simple. Assets are things that hold value, while liabilities are things you owe to others. So, essentially, your debt-to-asset ratio is assets divided by liabilities.
Liquid Net Worth Vs. Total Net Worth
When it comes to net worth, there’s a difference between your total net worth and your liquid net worth. Your net worth reflects your long-term wealth by including all your assets and liabilities. Your liquid net worth includes your:
- Cash
- Savings rate and compound growth in accounts like a TFSA
- Money market accounts
- Stocks and bonds
- Rental income
Locked-in retirement accounts and other registered accounts with a defined contribution plan or defined benefit plan, as well as other pension adjustments and employer pensions, are part of your total net worth.
What Net Worth Should You Have in Your 30s?
Your net worth should depend on your age. So, if you’re in your thirties, then your net worth should be equal to one times your salary. However, this does increase to 3 times your salary once you hit your 40s. When it comes to national averages, though, the range is between $ 35,000 and $135,000. Your family type doesn’t affect this.
What is the Net Worth Age Gap Between Renters and Homeowners?
Due to real estate equity, homeowners’ net wealth will be much higher than that of renters. In fact, homeowners under 35 have a net worth over 10 times that of renters of the same age, showing that younger households are still able to build net worth using their principal residence and other investable assets without working years.
How Student Debt Impacts Your Net Worth
The reason that student debt impacts your net worth is that it’s considered to be a liability. Any liabilities you have are deducted from your assets, reducing your net worth. If you’re just starting in the workforce, your net worth may be negative.
Tracking Your Net Worth and Common Mistakes That Occur
When calculating your financial security, creating a balance sheet can help you determine your net worth. Some of the most common mistakes that occur when doing this, though, include:
- Overvaluing your home
- Ignoring vehicle depreciation and other depreciating assets, you are double-counting your income.
- Omitting your small debts, like credit card balances
- Forgetting liquidating costs such as housing market changes, market corrections
For those who receive a life insurance payout or are the recipient under a last will, probate fees are often overlooked. To account for all of these things, the best thing you can do is use a net worth tracker with a spreadsheet template.
When you do an annual review, you can also account for side hustles, emergency fund increases, down payments for first-time home buyers, lifestyle inflation, windfalls, and even capital gains. Whether or not you’re the main income earner, the net worth line can help you reach your financial goals by determining your total wealth.
