Almost half (48%) of rich Canadians are underwhelmed by how financially well off they are at this stage of their life.
RBC Wealth Management surveyed 1,015 individuals aged 30-65 with a minimum household income of C$100,000 (£62,300, $75,800, €68,000).
When asked what net worth they would need to feel wealthy (defined as all assets, savings, investments, real estate), the average figure was C$1.3m.
Ontario residents cited the highest figure at C$1.5m and those in the Atlantic and Quebec regions gave the lowest figures of C$898,731 and C$925,738, respectively.
“Regardless of income, many Canadians find themselves behind on their wealth goals as many of the traditional ways we build wealth have changed over the generations,” said Tony Maiorino, head of RBC Wealth Management services.
“With the added backdrop of market uncertainty, clients are voicing their concerns and looking for support using non-traditional methods of meeting their wealth goals.”
Difficulty building wealth
Three-quarters of respondents agreed that building wealth is more difficult than in previous generations, with those in Ontario (81%) and Alberta (80%) feeling more strongly on the matter than their Quebec (66%) counterparts.
When asked why they think they are not as wealthy as they expected to be, most respondents attributed the gap to the rising cost of living (60%) and unexpected expenses (51%).
Other factors include: cost of raising children (40%), expensive home prices (30%), and salaries that are lower than expected (28%).
Of the 48% of respondents who are not as wealthy as they thought they would be, almost three quarters (73%) believe they will reach their financial goals before retirement.
This optimism, however, seems to clash with their confidence of understanding wealth management topics, with the majority agreeing the following topics are challenging:
- Knowing which information to trust (78%);
- Staying on top of what’s happening in the financial markets (76%);
- Using tax strategies to minimise taxes (71%);
- Ensuring they don’t outlive their assets during retirement (70%); and
- Understanding the use of insurance in a financial plan (66%)
Some 75% said they value the expertise of a financial expert.
Howard Kabot, vice-president of financial planning at RBC Wealth Management services, said he was “not surprised that so many respondents find them challenging”.
“The financial landscape is always evolving and people have less time to research and learn about wealth management topics.
“Most clients need to explore a variety of tactics through a holistic lens to build and preserve wealth.”