The income gap in Canada is the gap between the average income of the fifth quintile or the most affluent group of Canadians and the poorest group or the first quintile. This gap increased from $92 300 to $117 500 in 2009.
In 2020, the wealth gap in Canada for most households with the highest income quintile was 2.3 times higher than the combined average for the fourth quarter of 2020. These wealthy people had an average net worth of about $1.9 million per household. While the ordinary was about 292,000$ per household.
The middle-class division in Canada is decreasing. Which makes the low-income class augment. About 58% of Canadians are in the working-class category. In other words, they earn about 75% and 200% of the median household income after taxes. Some reasons for what caused middle-class households to shrink are because some have fallen into poverty, or others have moved into affluence. These two shifts balance what happens to the size of the middle class.
How much is rich, how much is poor?
It really depends on the perspective of how much is poor/rich. The perspective changes from person to person. For example, most people do not require someone to not have any money to their name to be considered impoverished. A survey revealed that people considered having $878 available in cash/bank account to be poverty-stricken. Now, for how much is moneyed. A study conducted by Schwab in 2021 found out that people believed that you need an average personal net worth of $1.9 million to be considered a wealthy person. For instance, with the value of the property owned, subtracted by everything owed, that would add up to almost $2 million. But again, it depends on a person's perception.
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