Are you part of the 1%?

Much has been discussed about the 1%, who they are and how much they have.  I wrote about this topic a few years ago following a discussion I had with one of my media viewers and I figured now is a good time to update who makes up the 1%, in Canada and abroad. 

Who makes it into the 1% depends upon two main factors, education and location.  Where and when you were born plays a larger role in becoming a member of the elite.  The good news is that education has helped billions to be lifted out of poverty. 

Canada

  • You are in the 1% if you earn $234,129.00 or more.  That is the entry point or the bottom of 1% earners.
  • The 1% income entry point by gender:           Male $276,387.00       Female $160,552.00
  • Although the 1% is still dominated by men at a ratio of 4.3-1, in recent years the number of women earning at least $250,000.00 jumped by 49% versus a 16% increase for men.
  • Overall, earnings of the 1% have gone up.  The number of 1percenters in Canada has risen over 10% since 2006. 
  • The 1% earn 11% of the total income In Canada.  Interestingly, 100 years ago the 1% earned 18% of all income so we have seen some income distribution to that end.
  • The 1% earn 11% of the total income pie and pay 22% of the taxes.  Juxtapose this against the fact that one-third of all Canadians did not pay any income tax at all in 2015. 
  • The average 1% earns 7 times that of the average Canadian. The middle-class Canadian earns between $25,000 - $45,000 a year with Canada’s median wage standing at $34,000.00.
  • There are approximately 272,000 Canadians in the 1% group. 
  • The math gets interesting now. 
  • 10% of one percenters or .1% of Canadians earn $685,000 which is roughly 27,000 Canadians.
  • At the top of the club or, 1% of the 1% of Canadians earn $2.6 million dollars a year, which is just under 3000 Canadians.  
  • Canada’s top 1% are most likely to live in Ontario or British Columbia.
  • The top 5% in Canada earn more than $120,219.00
  • The top 10% in Canada earn more $80,400.00

United States

  • In the USA, you are in the 1% with an income of $389,436.00 USD or $514,000.00 CAD

 

Globally

  • Globally you are in the 1% with an income of $47,000.00 CAD
  • The global 1% has the wealth of 50% of the entire wealth on the planet. $140 trillion USD.

The 8 richest people in the world own as much wealth as the poorest 3.5 billion people.  (there are 7.4 billion people on planet earth).  Curious who these men are?

  1. Bill Gates
  2. Amancio Ortega
  3. Warren Buffett
  4. Carlos Slim Helu
  5. Jeff Bezos
  6. Mark Zuckerberg
  7. Larry Ellison
  8. Michael Bloomberg

 

The bottom line is that we have much to be thankful for living in Canada.  

 

So how are you doing relative to your age? See the table below and take a look as to how you stack up.  This is a total net worth picture so add up all your assets, house included, deduct your liabilities and see your financial health. 

Target Net Worth for Singles

Age Sufficient Good Excellent Rich
20 $1000 $2000 $20,000 $50,000
25 $5000 $30,000 $120,000 $250,000
30 $20,000 $60,000 $250,000 $600,000
35 $40,000 $120,000 $400,000 $1,000,000
40 $80,000 $200,000 $600,000 $1,500,000
45 $130,000 $300,000 $900,000 $2,200,000
50 $190,000 $430,000 $1,250,000 $3,000,000
55 $250,000 $600,000 $1,700,000 $4,000,000
60 $320,000 $800,000 $2,200,000 $5,000,000
65 $400,000 $1,000,000 $2,500,000 $6,000,000
70 $370,000 $950,000 $2,400,000 $6,000,000
75 $340,000 $900,000 $2,300,000 $5,500,000
80 $310,000 $850,000 $2,100,000 $5,000,000
85 $280,000 $800,000 $1,800,000 $4,500,000
90 $250,000 $700,000 $1,500,000 $4,000,000
95 $210,000 $600,000 $1,200,000 $3,500,000
100 $170,000 $500,000 $900,000 $3,000,000

Target Net Worth for Couples

Age Sufficient Good Excellent Rich
20 $2000 $5000 $40,000 $60,000
25 $8000 $40,000 $200,000 $300,000
30 $30,000 $100,000 $400,000 $800,000
35 $60,000 $180,000 $700,000 $1,500,000
40 $100,000 $300,000 $1,100,000 $2,500,000
45 $150,000 $500,000 $1,500,000 $3,700,000
50 $210,000 $700,000 $2,000,000 $5,000,000
55 $270,000 $950,000 $2,500,000 $6,500,000
60 $340,000 $1,200,000 $3,000,000 $8,000,000
65 $420,000 $1,500,000 $3,500,000 $9,500,000
70 $400,000 $1,300,000 $3,500,000 $10,000,000
75 $390,000 $1,200,000 $3,400,000 $10,100,000
80 $370,000 $1,100,000 $3,200,000 $10,200,000
85 $350,000 $1,000,000 $2,900,000 $10,400,000
90 $320,000 $900,000 $2,600,000 $10,600,000
95 $290,000 $800,000 $2,300,000 $10,800,000
100 $260,000 $700,000 $2,000,000 $11,000,000

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