The income disparity in Canada widened in the past year due to a boost in financial markets, reduced interest earnings, and a weakening job market, according to Statistics Canada. The agency reported that the income gap, which reflects the difference in disposable income between the top 40% and bottom 40% of households, reached 46.7 percentage points in 2025, slightly higher than the previous year’s 46.4 percentage points.
The increase in the income gap was driven by slower wage growth for low-income households compared to the average, along with a decline in investment income attributed to reduced interest payouts on savings. Statistics Canada also highlighted that the wealthiest 20% of households held 65.7% of Canada’s total net worth by the end of 2025, averaging $3.5 million per household. In contrast, the bottom 40% of households held only three percent of the country’s net worth, with an average of $81,650 per household.
At the close of 2025, the wealth gap between the top 20% and bottom 40% stood at 62.7 percentage points, up by 0.6 percentage points from the previous year. Insolvency firm MNP Ltd. pointed out that this growing disparity was evident in financial surveys, although it noted signs of overall financial stability.
MNP Ltd.’s debt index, based on surveys, remained stable over the last year, indicating that Canadians have become more cautious about spending. However, financial pressures were not evenly distributed, with some individuals struggling to cover expenses and debt payments, while others were delaying significant financial decisions.
Grant Bazian, president of MNP Ltd., emphasized the challenges faced by many Canadians in managing their finances amidst a shifting and uncertain economic environment. The news release from MNP Ltd. highlighted the ongoing struggle for individuals to plan, budget, and secure their financial well-being.