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What is RICH in Canada?

in Single Income, Stats Canada

Stats Canada has published an interesting article outlining what your income level in Canada needs to be, to think of yourself as RICH (for 2004 at least):

An annual income of $89,000 was enough to put an individual among the 1.2 million Canadians who made up the top 5% of the country’s taxfiler population in 2004, according to a new study.

Similarly, an income of $181,000 was sufficient to put someone among the 237,000 people in the top 1% of the taxfiler population.

But to be part of the richest one-hundredth of a percent (0.01%) of taxfilers, Canadians had to have income of more than $2.8 million, the study found.

Interesting striation of the data, now this is individual income too, not sure how they would measure dual income families and such, are you Rich? Really Rich? Super Rich?

September continues on, and with the beginning of Autumn, do you need to start thinking about fall financial things?

  • RESP top ups for the end of the year?
  • RRSP top ups as well?
  • Insurance coming due soon?
  • Property tax assessments coming?
  • Preparation for the holiday season, by planning what you are going to spend and maybe figuring out “who gets what” early on?

Just some of the ideas to think about instead of raking leaves!

{ 3 comments }

  • Outroupistache September 30, 2007, 2:08 PM

    Good data, now how about a different take – finding out how much net assets instead of income counts as rich?

    Reply
  • Big Cajun Man September 24, 2007, 4:46 PM

    Excellent take!

    Reply
  • Traciatim September 24, 2007, 11:16 AM

    I think that ‘rich’ would be much further down on the list than the top 5%. I would gather that Rich has a much different meaning for each person, but I would think if you are in the top 25% of the population you should probably be considered ‘rich’.

    If you walk down the street knowing that out of every four people you see you are probably making more than three of them, you probably shouldn’t need to worry about money if you manage your money well.

    Though, then again, at 5% and only $89,000 was the magic number. With 32% to put toward a house that leaves you only leaves $2373 a month for a housing payment. A home in Vancouver on 2006 the average selling price from the CREA was $520,686 with 20% down ($104,137.20) anda 4.99% interest rate that makes your payments $2,420.30.

    So even the top 5% of the population can’t buy the average selling home in Vancouver. Maybe only the top 4% of the population lives there?

    P.S. I know, wages from 2004, CREA from 2006 . . . blah blah blah, I still stand by my point. No one should be buying houses in places that are that expensive.

    Reply

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