Statistics Canada reported on Monday that the income disparity between the wealthiest and poorest households in Canada widened in the previous year. The agency stated that the income gap, which measures the difference in disposable income share between the top 40% and bottom 40% of households, increased to 46.7 percentage points in 2025 compared to 46.4 percentage points in the prior year.
The increase in the income gap was attributed to slower wage growth for lower-income households, reduced investment income due to lower interest payouts, and a softening job market. Additionally, Statistics Canada highlighted that the top 20% of households accounted for 65.7% of Canada’s total net worth in 2025, with an average of $3.5 million per household. In contrast, the bottom 40% of households held only three percent of Canada’s net worth, averaging $81,650 per household.
At the end of 2025, the wealth gap between the top 20% and bottom 40% of households stood at 62.7 percentage points, representing a 0.6 percentage point increase from the previous year. Insolvency practice MNP Ltd. also commented on the growing wealth disparity, noting signs of stability alongside uneven financial pressures. Their debt index remained stable over the past year, indicating a cautious approach to spending among Canadians. However, financial challenges persist, with some individuals struggling to meet financial obligations while others delay major financial decisions.
Grant Bazian, the president of MNP Ltd., expressed concerns about the evolving financial landscape, emphasizing the increasing uncertainty that makes financial planning and budgeting more challenging for many Canadians.
