RBC survey reveals the net worth that Canadians say means “wealthy”
The wealth accumulated by high-income Canadians is something of a disappointment.
Around half of those in households earning at least $100K a year thought they would be wealthier at this stage of their lives than they are; and most believe it is harder to build wealth now than it was for previous generations.
The poll conducted by Ipsos for RBC Wealth Management found that the net worth to make respondents feel wealthy where they live is $1.3 million nationwide.
Ontarians need a little more at $1.5 million, while those in the Atlantic and Quebec regions citing the lowest figures at $898,731 and $925,738 respectively.
"Regardless of income, many Canadians find themselves behind on their wealth goals as many of the traditional ways we build wealth have changed over the generations," says Tony Maiorino, Head, RBC Wealth Management Services. "With the added backdrop of market uncertainty, clients are voicing their concerns and looking for support using non-traditional methods of meeting their wealth goals."
We’ve got it tougher
Three quarters of respondents said building wealth is harder for them than it was for previous generations.
This rises to 80% for those in Ontario and 81% for Albertans while respondents in Quebec were least likely to agree (66%).
The cost of living is the main reason why respondents feel they are less well off than expected (60%) especially in Alberta, followed by the cost of raising children (40%), expensive home prices (30%), and salaries that are lower than expected (28%).
Meeting financial goals
Despite feeling less wealthy and having a tougher journey to accumulating their wealth, most respondents said they are confident in achieving their financial goals before retirement (73%).
However, there are several topics which high-income Canadians said they found challenging:
- Knowing which information to trust (78%)
- Staying on top of what's happening in the financial markets (76%)
- Using tax strategies to minimize taxes (71%)
- Ensuring they don't outlive their assets during retirement (70%)
- Understanding the use of insurance in a financial plan (66%)
"Things like tax strategies, insurance and retirement planning play a key role in building wealth today but I'm not surprised that so many respondents find them challenging. The financial landscape is always evolving and people have less time to research and learn about wealth management topics," says Howard Kabot, Vice-President, Financial Planning, RBC Wealth Management Services. "Most clients need to explore a variety of tactics through a holistic lens to build and preserve wealth."
