Canadians nearing retirement with a home and pension hold median net worths 1.4 million higher than peers without
Statistics Canada’s 2023 Survey of Financial Security (SFS) shows that Canadians approaching retirement age, specifically those aged 55 to 64, exhibit significant differences in net worth based on home ownership and access to employer-sponsored pension plans.
Canadians in this age bracket who own their principal residence and have an employer-sponsored pension plan hold a median net worth approximately $1.4m higher than those with neither asset.
Historically, Canadians have accumulated assets and reduced debts during their working years, often drawing down those assets in retirement.
Families with low net worth are more likely to extend their working years, require increased government support, and face a higher poverty risk.
In 2023, families whose main income earner was 55 to 64 and who owned a home with an employer-sponsored pension plan showed a median net worth of $1.4m, while renters without a pension plan had a median net worth of just $11,900.
The 2023 SFS details asset and debt holdings among Canadian families, illustrating that the highest net worth belongs to those holding both a home and an employer-sponsored pension. In contrast, those with neither have the lowest net worth.
Families with only one of these assets occupy an intermediate position: those owning a principal residence but without a pension plan have a median net worth of $914,000, while families with a pension plan but no residence have a median net worth of $359,000.
Young families, led by a major income earner under 35, saw the largest increase in real median net worth, rising 179 percent between 2019 and 2023 to $159,100. Young homeowners particularly benefited, with their median net worth rising by $142,800 to $457,100 in 2023.
Those without a principal residence saw more modest gains, with median net worth increasing by $26,700 to $44,000. The lowest net worth among younger families was found in those lacking both a principal residence and a pension plan, with a median net worth of $27,000, up from $10,500 in 2019.
As home ownership becomes less accessible, a growing segment of young families is building wealth outside of traditional home ownership.
Among families renting without an employer pension plan, the share with a net worth exceeding $150,000 rose from 5 percent in 2019 to 15 percent in 2023.
Many in this group held assets such as non-primary real estate (median value $350,000), Registered Retirement Savings Plans (RRSPs) (median $35,000), or Tax-Free Savings Accounts (TFSAs) (median $20,000).
The report also highlights the effects of rising interest rates on Canadian mortgage holders. In 2023, 39 percent of families held a mortgage, either for a principal residence or other real estate, with a median mortgage debt of $205,000, down from $219,500 in 2019.
Families with variable-rate mortgages, who made up 20 percent of mortgage holders, faced immediate impacts from rising interest rates, with median rates reaching 5.7 percent.
Monthly payments for these variable-rate mortgage holders climbed by 35 percent, reaching $2,020 in 2023, with young families experiencing an 82 percent increase in payments, averaging $2,600.
For families with fixed-rate mortgages, the median interest rate was notably lower at 3.0 percent in 2023. However, 31 percent of these families are approaching a mortgage renewal by the end of 2024, potentially at higher rates.
