Wealth and debt: How are millennials doing?
Description: Wealth and debt: How are millennials doing?
Wealth and debt: How are millennials doing?
Are millennials better or worse off than Gen-Xers at the same age?
Millennials are now the largest generation of people in Canada. They're the most educated and diverse generation, but they face unique challenges.
Millennials had higher after-tax household incomes than young Gen-Xers.
| Young Gen-Xers in 1999 | Millennials in 2016 | |
|---|---|---|
| Median after-tax household income between 25 and 34 years old | $51,000 | $66,500 |
Millennials had higher assets and net worth than young Gen-Xers, but they also carried more debt.
Home ownership, living in Toronto or Vancouver, and having a higher education were three factors associated with higher net worth
| Young Gen-Xers in 1999 | Millennials in 2016 | |
|---|---|---|
| Median assets | $76,700 | $154,000 |
| Median debts | $19,400 | $35,400 |
| Median net worth | $42,800 | $70,600 |
Though millennials are entering the housing market at similar rates as previous young generations, they are taking on larger mortgages.
| Young Gen-Xers between 30 and 34 years old in 1999 | Millennials between 30 and 34 years old in 2016 | |
|---|---|---|
| Median mortgage debt on principal residence | $117,500 | $218,000 |
| After-tax income for those with principal residences | $65,500 | $83,200 |
Millennials are relatively more indebted.
| Young Gen-Xers in 1999 | Millennials in 2016 | |
|---|---|---|
| Debt-to-after-tax income ratio | 125% | 216% |
Though their median net worth is higher, there are greater differences in economic well-being among millennials. Millennials in the top 10% held 55% of all total net worth accumulated by their generation.
| Young Gen-Xers in 1999 | Millennials in 2016 | |
|---|---|---|
| Bottom 25% | $6,200 | $9,500 |
| Top 25% | $126,900 | $253,900 |
Notes: Unless otherwise noted, millennials represent those between 25 and 34 years old in 2016, and young Gen-Xers indicate those between 25 and 34 years old in 1999.
Results are presented in 2016 current dollars and adjusted for inflation to allow for a comparison over time.
Statistics provided refer to the age and generation of the major income earner in the household or family.
Sources: Statistics Canada, Survey of Financial Security (1999 and 2016) and Canadian Income Survey (2016). Heisz, A. and Richards, E. 2019. Economic Well-being Across Generations of Young Canadians: Are Millennials Better or Worse Off? Economic Insights, no. 92. Statistics Canada. Catalogue no. 11-626-X. Ottawa : Statistics Canada.