What does it mean to be "Affluent" in Canada?
Canada has a diverse and dynamic population of high net worth individuals. When it comes to categorizing these individuals, ﬁnancial advisors often use the terms “mass afﬂuent,” “afﬂuent,” and “ultra afﬂuent.” While these terms are not clearly deﬁned and can vary depending on the source, they generally refer to individuals with different levels of wealth and ﬁnancial resources.
The term “mass afﬂuent” is often used to describe individuals with investable assets between $100,000 and $1 million. These individuals have a comfortable lifestyle, but they may not have the same level of ﬁnancial resources as those in higher wealth categories. According to a 2020 report by Investor Economics, there are approximately 3.8 million mass afﬂuent households in Canada, accounting for roughly 24% of all households.
The term “afﬂuent” typically refers to individuals with investable assets between $1 million and $10 million. These individuals have a high level of wealth and often enjoy a luxurious lifestyle, with access to exclusive services and products. According to the same Investor Economics report, there are approximately 375,000 afﬂuent households in Canada, accounting for roughly 2.4% of all households.
The term “ultra afﬂuent” is used to describe individuals with investable assets of over $10 million. These individuals have a significant amount of wealth and often have access to exclusive investment opportunities and ﬁnancial services. According to a 2020 report by Knight Frank, there were approximately 10,100 ultra-high net worth individuals (UHNWIs) in Canada, representing 0.1% of the global UHNWI population.
- Investor Economics, “Distribution of Wealth in Canada: The Financial Performance and Preferences of Canadian Households,” 2020.
- Knight Frank, “The Wealth Report 2021,” 2021.
In conclusion, while the terms “mass afﬂuent,” “afﬂuent,” and “ultra afﬂuent” are not clearly deﬁned, they generally refer to individuals with different levels of wealth and ﬁnancial resources. Canada has a diverse population of high net worth individuals, with approximately 3.8 million mass afﬂuent households, 375,000 afﬂuent households, and 10,100 ultra-high net worth individuals. These individuals often have access to exclusive services and products, and ﬁnancial advisors must understand their unique needs and preferences to provide effective advice and guidance.
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