Canada’s affluent are an increasingly diverse group, finds a BMO Harris Private Banking study released today.
The study found that two-thirds (67%) are self-made millionaires, making their wealth on their own, while only one-in-five (20%) attribute at least part of their wealth to an inheritance.
Additionally, almost half (48%) are either immigrants to Canada (24%), or describe themselves as first-generation Canadians with at least one parent born outside of Canada (24%). Within this group of new Canadians, more than two-thirds (68%) reported that their wealth was self-made. Interestingly, the study found that new Americans account for only one-third of the wealthy in the U.S.
“For generations, many have considered Canada to be a place that provides opportunities for those who are willing to move here and contribute to the growth of the country. The findings of this study confirm this long-standing belief,” said Alex Dousmanis-Curtis, senior vice president and head, BMO Harris Private Banking. “Today’s high-net worth Canadians, whether they were born here or have adopted Canada as their own, prove that hard work and an entrepreneurial spirit can result in prosperity and success.”
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Women and Wealth
The study also revealed that women make up one-third of Canada’s affluent, up from 21% three years ago. The study found that:
- 40% of women generated their own wealth
- One-third of women manage their own investments (versus 59% of men)
“Today’s women are controlling more and more wealth in Canada, and that number is increasing by eight percentage points annually,” said Dousmanis-Curtis. “From a private banking perspective, it’s clear that the face of wealth in Canada is changing and there is no longer one stereotypical type of high-net worth client. As an industry, we need to anticipate and exceed the unique needs of this diverse client base if we are to succeed.”
Other highlights include:
- The wealthy tend to be younger in the U.S. than in Canada, with 24% of high-net worth Americans being under the age of 40 versus just 4% in Canada
- 68% of affluent Canadians are men
- Education is a big indicator of wealth with 80% of high-net worth Canadians possessing at least a university degree and 46% a graduate or professional degree; 10% have a technical, trade or apprenticeship degree and just 9% hold only a high school diploma or less.
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Regional Breakdown
Region | Percentage who are self-made millionaires | Percentage who are new Canadian millionaires | Percentage who are women millionaires |
---|---|---|---|
National | 67 | 48 | 32 |
Atlantic | 83 | 46 | 37 |
Quebec | 64 | 44 | 24 |
Ontario | 64 | 45 | 36 |
Alberta | 72 | 44 | 36 |
British Columbia | 74 | 68 | 26 |