The disparity between the wealthiest and poorest individuals in Canada expanded last year, driven by financial market growth, decreasing interest payments, and a weakening job market, according to Statistics Canada’s recent report.
Statistics Canada revealed that in 2025, the income gap, which represents the difference in disposable income shares between the top 40% and bottom 40% of households, reached 46.7 percentage points, slightly higher than the 46.4 percentage points recorded in the previous year.
The widening income gap was attributed to slower wage growth among lower-income households compared to the national average, coupled with reduced investment income due to declining interest rates on savings, as per the agency’s findings.
Additionally, Statistics Canada highlighted that by the end of 2025, the top 20% of wealth holders in Canada collectively owned 65.7% of the country’s total net worth, amounting to an average of $3.5 million per household. In contrast, the bottom 40% of wealth holders possessed only three percent of Canada’s net worth, averaging $81,650 per household.
At the close of 2025, the wealth gap between the top 20% and the bottom 40% stood at 62.7 percentage points, marking a 0.6 percentage point increase compared to the previous year.
MNP Ltd., an insolvency practice, also observed the growing wealth gap, noting it in their financial surveys, albeit mentioning overall financial stability indicators.
The firm reported that its debt index, based on surveys, remained stable over the past year, reflecting a cautious approach by Canadians towards spending. However, it highlighted uneven financial pressures, with some individuals struggling to meet financial obligations while others refrained from significant financial commitments.
Grant Bazian, the president of MNP Ltd., emphasized the challenging financial landscape faced by many Canadians, characterized by increasing uncertainty and difficulties in financial planning and management.
