Canadian millennials say they need $166,000/yr to feel financially secure

Oct 25 2018, 4:19 pm

Canadians have big financial dreams, according to a recent survey from Edward Jones.

The poll conducted by Leger, found that Canadians believe they need to an average pre-tax salary of $250,000 to feel financially comfortable.

This stands in stark contrast with the country’s median, after-tax income of $56,000, as reported in 2015 by Statistics Canada.

According to the data, Canadians’ financial ambition is high. When asked how much money people feel they would need to have the lifestyle they truly desire, most added another $50,000 — bringing their ideal pre-tax income to $300,000.

The study also took a deeper dive into the demographical differences when it comes to income expectations and found that millennials believe they need close to $166,622 to feel financially comfortable and need at least $299,854 to afford the lifestyle they desire.

“It’s encouraging to see Canadians have a general idea of where they want to be, but have they actually sat down and thought about the lifestyle they want in detail?” said Patrick French, principal of solutions tools and consulting with Edward Jones.

Canadians aged 35-54 believe they need an added $60,000 ($227,290) to be financially comfortable compared to millennials, which may be attributed to familial financial responsibilities.

Planning for retirement could be impacting Canadians in the 55-64 age group, the survey found.

Respondents in this category averaged needing the highest number of pre-tax income at $398,347. When asked how much they need for the lifestyle they want, the figure dropped by over $70,000 to $325,066, which signals this age group may be saddled with unwanted financial responsibilities.

“The research indicates that financial expectations and needs are continuously evolving through different stages of life,” added French.

These findings are the result of an online survey of an online survey of 1565 Canadians between May 23 to 26, 2017.

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