Did you know that Canada contributes more than 3% to the global share of millionaires? (16) Canada is home to one of the largest cohorts of millionaires. According to statistics, the burgeoning number of millionaires is showing no sign of regression. Despite the covid-19 pandemic, the wealth of the Canadian population kept on reaching new milestones. By the end of 2020, the top 20 Canadian billionaires had added 37 billion USD (2) to their collective net worth. This trend was not only limited to billionaires. Several millionaires also witnessed a steep increment in their wealth. They were soon followed by several wealthy Canadians who surpassed the 1-million-dollar threshold.
How many millionaires are in Canada in 2020/21?
According to the Global Wealth Data published by Credit Suisse, there were 1,681,969 millionaires in Canada at the end of 2020. Despite economic setbacks, 2020 alone saw about 246,000 new entrants to this list (3). Economists are expecting to see a similar trajectory in 2021.
Interestingly, more than two-thirds of these are self-made millionaires with inspiring rags to riches stories (4). However, the majority of these Canadians are entrepreneurs and investors who boast multiple streams of income. The tech start-up culture is also taking off, with several young entrepreneurs joining hands to launch unique services; in a bid to become millionaires of the future.
Lately, the social media boom also saw several new Canadian millionaires join this exclusive list. Although they still make up only a fraction of the total percentage, several YouTubers and Tick Tock celebrities became millionaires (5) by producing engaging video content for their viewers.
As far as conventional career paths are concerned, physicians and corporate managers earn the most, giving them a greater than average chance at becoming a millionaire (6). But, apart from that, the IT and Software industry specialists are also cashing in on their expertise.
What percentage of Canadians are millionaires?
Currently, Canada sits at the tenth position among countries with the highest percentage of millionaires (3). Roughly 5.6% (7) of the adult population enjoy this coveted title. By considering the total population of Canada that includes both adults and minors, this percentage comes out to be 2.32%.
In addition, Canada ranks seventh (16) globally for UHNW individuals (individuals with a net worth of at least 30 million dollars). This number makes Canada one of the world’s wealthiest countries and the second wealthiest in North America, only behind the United States.
Most Canadian millionaires are concentrated in rich cities, with Calgary reportedly having the highest number of millionaires. According to a statistics report published in 2018, 12.3 % of the adult population (9) in Calgary consists of millionaires. The same report also revealed that millionaires in Calgary have the third-highest median income (1.4 million dollars) among Canada’s major metropolitan areas.
Economists predict this percentage to grow significantly in the upcoming years since many individuals have wealth below the one-million-dollar line (10). Moreover, as soon as the economy recovers from the covid-19 recession, these individuals are expected to surpass the threshold.
What is the top 1 percent net worth in Canada?
Breaking into the top 1 percent of the wealthiest people in Canada is no easy feat. You’ll need approximately 7 million USD (12) and an annual income of 180K before you can count yourself in this exclusive cadre.
Canada’s richest 1 percent holds more than 25% of the country’s riches (12). This figure is a sharp indicator of the growing disparity in wealth distribution between the rich and the poor in this country. Nevertheless, this figure is still much lower than the global average, according to which the richest 1 percent own about 43% of the global wealth.
A sizeable portion of this 1 percent is dominated by individuals having generational wealth. In Canada, the top 1 percent collectively hold more than 3 trillion dollars in wealth, making them one of the most important stakeholders of the Canadian economy.
More than 10,000 adults in Canada fall in the category of UHNW individuals, and they dominate this top 1 percent category. The majority of these ultra-rich individuals have also invested in stock markets, real estate and related ventures.
How many billionaires are in Canada?
2021 was undoubtedly the best year for billionaires in Canada. The country saw a monumental rise in the number of billionaires in a single year, a record growth from 44 in 2020 to 64 in 2021 (13). At this time, 65 billionaires in Canada hold a massive 231 billion dollars in wealth. Their collective wealth soared by an unprecedented 88 billion USD in one year.
David Thomson and his family are the biggest names in this billionaire club, who owns a fortune thanks to his late grandfather’s multi-billion media and publishing company. The Toronto-based billionaire is the chairman of Thomson Reuters and holds stakes in various telecom and media companies, both national and international. Comfortably sitting at the 33rd rank among the richest people globally (14), David Thomson has a fortune north of 45 billion dollars.
Of the 64 billionaires in Canada, 7 have listed E-commerce as their source of wealth. The list of billionaires includes Joseph Tsai, vice-chairman of Alibaba, and Tobias Lütke, CEO of Shopify, among several others. Most of these billionaires are self-made, and it is safe to say that diving into the online business world paid off for them.
The bloom in the international trade of natural resources with China and Canada’s increased focus towards its service sector is the primary cause behind the burgeoning number of Canadian millionaires. This number is expected to reach 2 million by 2023 (3), but we might reach this milestone even sooner with the recent increments in Canadian wealth.
How Many Millionaires In Canada
Canada will have 185,000 new millionaires at the end of the year (2020) with an average annual income of $1.2 million, to bring the total number of millionaires in Canada to 1,681,969 in 2021. Source: 16
According to a new wealth report, Canada’s exclusive millionaire club is one of the fastest-growing cohorts of millionaires in the world. Canada’s richest 87 families have a median wealth of more than $1.5 billion, enough to hold the richest family in Canada and the second richest in North America. According to the new report, the country’s wealthiest families have assets of more than $3 billion, while the median wealth in Canada is just under $295,000. Based on a wealth ranking compiled by Canadian Business magazine, the report found that Canada’s “richest” families are each worth up to $2.3 billion. In contrast, families with the lowest median wealth make up less than 1% of all families. Sources: 2, 14
By comparison, the number of millionaires in the US will rise by 18 percent to more than 20 million people over the same period. According to the report, there are nearly 1.3 million millionaires worldwide, compared to just under a million in Canada, where the wealth boom continues. The report said many more TFSA millionaires, but not nearly as many as the country’s wealthiest families. By comparison, the number of billionaires in Europe, Asia, the Middle East, and North Africa grows faster than Canada’s. Sources: 9, 10, 14
The figures in the Global Wealth Report are measured in US dollars, but the number of millionaires in Canada may be even greater than the report suggests. Most Canadian millionaires are self-made millionaires, nearly half of whom are immigrants, and Smith has put $10,000 of his own savings into Tesla’s stock, making his first investment outside Canada. Davies said there are more millionaires than any other country in Europe, Asia, the Middle East, or North Africa. But there are fewer than half as many millionaires as in any other country in North America and less than a third in Asia and Africa. Sources: 9, 10, 14
The top 0.01% group comprises the 2,780 people in Canada who earn the highest income in the country. From an income perspective, Statistics Canada says it takes an annual income of $1.5 million to provide for a family of four worth more than $100,000, or about $2.2 million. Mr. Kerstetter said that families whose families are millionaires make up only about 1 percent of the total wealth of the Canadian population. Still, they account for about a third of Canada’s wealth. Sources: 4, 5, 7, 8
The biggest amount you have on your bank statement is what makes you rich, whether it’s a house, a car or even a small amount of money in your bank account. Sources: 13
We also remember that rich Canadians are more likely to inherit assets from their families, business owners. To find out who is a wealthy millionaire, we deduct what you owe from your own. For example, if you have a couple under 30 who live in Vancouver and want excellent net worth, they should aim for their combined wealth of $1.5 million. After all, the top 10% of millionaires in Canada with the highest net worth in the country need a net worth of between $759,900 and $900 or more. Sources: 6, 11, 13
To find out about your chances of becoming a millionaire, you can know how many millionaires there are in America. There are more than 1.5 million millionaires in the United States and about 1 million in Canada. For those wondering how to get into the top 1%, I wrote a post Sources: 4, 10
Based on what I wrote above, to make the top 1% of Canada rich, you must have at least $1.5 million in assets, including assets and less debt, together. To be in Canada’s 1 percent, you need $2.3 million in assets ($3.2 million in the US and $4.1 million in Canada). The 81,340 multimillionaires who live in this country, which is also proportionate to the top millionaires in the world, are in some ways simply higher. For someone with a “net worth,” his wealth of $6.7 million is more than double that of the average Canadian. Sources: 4, 10, 15
It stands to reason that there will be many more TFSA millionaires in Canada by the end of 2020. If billionaires are held to the same standards as the top 1% of the world’s richest people, the table below is not quite as high as it should be. Sources: 10, 12
The 2020 trend is based on Forbes’ 2020 Billionaires of the World. Canada will have 185,000 new millionaires at the end of the year with an average annual income of $1.2 million, to bring the total number of millionaires in Canada to 1,681,969 in 2021. Currently, we have a national currency of 2020 – 2 min, so how many millionaires do we have at that time? It is now common for the top 1% of billionaires in the US and Canada to hold more than 1 million shares in a company. Sources: 10
The richest Canadian is David Thomson, with a net worth of $25 billion, making him the richest person in Canada with an average annual income of more than $1.2 billion. With a fortune of $31.6 billion, Thomson is the second richest man in the United States and is expected to be among the ten richest people in North America by the end of this year. Joseph Tsai is Canada’s second-richest person, with an estimated fortune of $10.1 billion. The exciting part of our report is that only 2.5% of global millionaires, or about 2,500 people, are Canadian millionaires. Sources: 0, 1, 3, 10
6) University Magazine Canada – https://www.universitymagazine.ca/jobs-will-make-millionaire-canada-2019/
9) Fact Sheet by Calgary Wealth – https://calgaryeconomicdevelopment.com/dmsdocument/326
10) Statistics Canada – https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110005501&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=3.3&cubeTimeFrame.startYear=2017&cubeTimeFrame.endYear=2018&referencePeriods=20170101%2C20180101
14) Forbes – https://www.forbes.com/billionaires/
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