Good News: Canadians Are Millionaires!

Evelyn Jacks

According to a June report from TD Economics, Canadians’ net worth rose to over $1 million per household in 2025, which is a new record and an increase of 5.3% over 2024.  How is this possible when the housing and labor markets are soft and some are swooning over the real costs of high inflation?  The answer lies in the investments Canadians are holding and, by extension,  in their relationships with the right financial advisors.  What has changed?

The Cornerstone of Wealth Has Changed.  According to the June 9, 2026 report, the national average net worth per household rose by 37% between 2019 and 2025, but the traditional housing market is not the reason.  As housing prices flatten, financial investments have taken over as the cornerstone of wealth, which resulted in the 37% increase.  Last year in particular, financial assets per household grew by 9.9%, which is a record-breaker.

The Real Wealth Management Difference .  Offsetting the rise in household financial wealth is a rise in spending growth.  The report makes an interesting and important point:

“Across provinces, spending growth aligns more closely with financial asset gains than with income growth. . .where financial assets grew somewhat faster, (one) tended to see stronger spending outcomes, suggesting that wealth affects from financial assets played a more prominent role in shaping consumption in 2025”.

Financial assets, in short, may now matter more than income growth.  

This should not be news to wealth advisors, in particular those with an RWM™ Designation,  whose role it is to monitor all angles of a household’s financial picture – with a focus on both income and capital, after tax – as well as both individual and household net worth.  The goal is to strategically build sustainable wealth across market cycles to fund future consumption.

It appears that in this cycle, when real estate valuations have declined and income resulting from a rapidly changing labor market stalls, the financial markets – and sound wealth planning -  are doing more of the work to bridge income gaps.

Further, Stats Canada’s June report on the first quarter of 2026 shows a continuing wealth building trend:  household balance sheets add $148 Billion in financial assets in that time. 

The Debt Management Factor.  Another piece of good news is that debt-to-income ratios are below pre-pandemic levels in all but two provinces: Ontario and PEI. 

Ontario now is the most leveraged province in the country, in fact, and income growth has been weak there.  Saskatchewan, in contrast, has the slowest debt growth in the country, while households in  Alberta and Manitoba also slowed borrowing.

But looking the nation’s household liabilities increased by less than half of one percent, consisting mainly of mortgage and non-mortgage debt; not unusual in the winter season when new construction and sales activities in the housing market tend to be slower.

Importantly, financial assets less liabilities resulted in net financial assets that grew by 1.6% for the second consecutive quarter to $448,433 on a per capita (per person) basis, while non-financial assets as a share of household net worth fell slightly (-0.1%). 

Financial Wealth and Consumption.  This interesting report shows what a big story household balance sheets can tell about strategic long term planning and its role in  financial peace of mind.   

Financial wealth gains were more closely correlated with the ability to spend than they have ever been, says the TD report,  suggesting that financial freedom was truly possible for Canadians with financial assets on their balance sheet, at a time when income growth slowed and housing valuations swayed. 

Those who are highly leveraged, especially in debt that is not backed by appreciating assets, will continue to be vulnerable to the financial shocks that come from downward changes to income, upward changes to interest rates, or dramatic economic changes, such as the emerging AI revolution and its potential to crush job sectors in the near future. 

Add to this, increases in inflation and taxes, particularly in provinces that have de-indexed their tax brackets, like Manitoba and BC. and the real wealth management dilemma is clear: purchasing power is decreased.

What to do.  These observations point to the increasingly important relationships between astute investors and their consistent commitment to managing their wealth as economic and demographic realities change in Canada and around the world. 

It’s a key reason to delve more deeply into the benefits of using a Real Wealth Management™  framework which goes beyond investment selection.   It is a holistic, multi-disciplinary strategy focused on sustainable family wealth.  It focuses on maximize after-tax returns to improve income and cash flow, thereby protect assets from inflation and the cost of fees, including interest. 

Its  long term view also considers how to seamlessly transfer wealth across generations to ensure more of it stays within the intergenerational stakeholder group, rather than with the tax department.   

A professional with an RWM™ designation is trained to integrate three financial documents in planning with each stakeholder and the family as a whole; that is, the tax return, the net worth statement and the financial plan.  A multi-advisory team of professionals, which can include accountants, lawyers, financial advisors, retirement, insurance, business and estate specialists, assists with decision-making, as required, when life events, financial events or economic events put money into motion.

The Bottom Line.  Ancient wisdoms provide some solace to changing economic circumstances.  There is comfort in knowing we’ve been here before.

Consider the words of Ben Franklin, who aside from his famous tax quote (. . .nothing is certain but death and taxes. . .), famously said in Poor Richard's Almanack (1737) "A penny saved is two pence clear"  or as we say these days, a penny saved is a penny earned.

For investors – or those who are ready to be – this is the right time to jump into planning for your future with a highly qualified advisory team led by a trusted and highly trained manager, like an RWM™, to oversee your strategic process.

For tax and financial advisors reading this post, it’s time to get proactive about family net worth analysis and the creation of mid-year tax and financial plans to ensure household wealth growth continues because financial risks that may be just around the corner, are managed.   Consider adding an RWM™ designation to your credentials so that investors can find you.