What Is a Good Net Worth by Age? Real Numbers for Canadians
Dec, 1 2025
Canadian Net Worth Calculator
Compare your current net worth against Canadian age-specific benchmarks to see if you're on track for financial security.
Most people think net worth is about how much money they have in the bank. But it’s not. Net worth is what you own minus what you owe. That includes your home, investments, savings, and even your car - minus your mortgage, credit card debt, student loans, and any other bills. And knowing where you stand by age can help you see if you’re on track - or if you’re falling behind without even realizing it.
Why Net Worth Matters More Than Income
Someone making $120,000 a year might seem rich. But if they’re spending every dollar, carrying $50,000 in credit card debt, and have no savings, their net worth is negative. Meanwhile, someone earning $60,000 who saves 20% and pays off debt fast could have a net worth of $300,000 by 45. Income tells you how much you earn. Net worth tells you how much you’ve kept.
In Canada, the average household net worth is around $400,000, according to Statistics Canada. But averages hide big gaps. A 30-year-old with $20,000 saved and no debt is doing better than a 50-year-old with $500,000 in assets but $450,000 in mortgage debt. Net worth isn’t about being rich - it’s about being secure.
Net Worth Targets by Age - Canadian Benchmarks
There’s no magic number that works for everyone. But research from the Federal Reserve, Bank of Canada, and financial planners in Toronto and Vancouver shows clear patterns. Here’s what most people aiming for financial stability should aim for:
- By age 25: $10,000-$25,000
- By age 30: $50,000-$100,000
- By age 35: $100,000-$200,000
- By age 40: $200,000-$400,000
- By age 45: $300,000-$600,000
- By age 50: $500,000-$800,000
- By age 55: $700,000-$1,200,000
- By age 60: $900,000-$1,500,000
These numbers include your home equity, RRSPs, TFSAs, investments, and savings - minus any loans or credit card balances. They’re not goals for the ultra-rich. They’re realistic targets for middle-income Canadians who started saving early and stayed consistent.
How These Numbers Are Calculated
Let’s break down what goes into each number. Say you’re 35. Your net worth includes:
- Your home’s current market value (minus your mortgage balance)
- Your RRSP and TFSA balances
- Any stocks, ETFs, or mutual funds you own
- Your car’s resale value (if you own it outright)
- Your savings accounts and GICs
- Minus: student loans, car loans, credit card debt, personal loans
Many people forget to subtract debt. Others overvalue their homes or cars. A $500,000 house with $350,000 left on the mortgage adds only $150,000 to your net worth - not $500,000. A $25,000 car that’s five years old is worth maybe $8,000. Be honest. Use real numbers.
Tools like the Financial Health Index a free tool used by Canadian financial advisors to track net worth trends across age groups show that people who track their net worth monthly are 3x more likely to hit their targets by 50.
What If You’re Behind?
Let’s say you’re 42 and your net worth is $80,000. You expected to be at $300,000. Don’t panic. You’re not broken. You’re just behind. The good news? You can catch up - if you’re willing to make changes.
Here’s how:
- Stop lifestyle inflation. Every time you get a raise, don’t upgrade your car or rent a bigger apartment. Put half the raise into investments.
- Pay off high-interest debt first. Credit cards at 20% interest eat your net worth faster than anything else. Pay them off before investing.
- Max out your TFSA. Every dollar you put in grows tax-free. If you’ve never contributed, you have over $95,000 in room as of 2025. Start filling it.
- Invest in low-cost index funds. A simple portfolio of 70% VCN (Canadian index) and 30% VUN (U.S. index) has returned about 8% annually over the last 15 years. Compound that.
- Review your net worth every quarter. Track it in a spreadsheet or free app like Wealthica. If you don’t measure it, you won’t improve it.
One client I worked with in Mississauga was 44 with $60,000 net worth. She started contributing $1,000 a month to her TFSA, paid off her car loan early, and sold her second car. Five years later, she had $320,000. She didn’t win the lottery. She just stopped wasting money.
Home Equity Is Your Biggest Asset - But It’s Not Liquid
For most Canadians, their home makes up 60-80% of their net worth. That’s normal. But don’t confuse home equity with cash. You can’t use your house to pay your credit card bill. If you’re counting on selling your home to fund retirement, you’re taking a big risk. Housing markets can drop. Interest rates can rise. And you still need a place to live.
Build other assets too. Even if you live in a $900,000 home in Toronto, you still need $200,000+ in investments outside of it. Otherwise, you’re one market crash away from being house-rich and cash-poor.
What’s Holding Most People Back?
It’s not lack of income. It’s habits. Here are the top three mistakes Canadians make:
- Waiting until they’re "ready" to invest. There’s no perfect time. Start with $50 a month. You’ll learn more from doing than waiting.
- Thinking net worth is only about money. It’s also about freedom. If you’re working a job you hate because you need the paycheck, your net worth is low - even if your bank account looks good.
- Comparing yourself to influencers. Instagram posts show luxury cars and vacations. They don’t show the $120,000 in debt behind them. Focus on your own path.
One 28-year-old in Ottawa told me he felt behind because his friend bought a $70,000 Tesla. But his friend had $45,000 in student loans and no TFSA. His own net worth? $32,000 - all in index funds and savings. He was ahead. He just didn’t realize it.
Net Worth Isn’t a Race - It’s a Marathon
You don’t need to be rich. You just need to be secure. That means having enough to cover 6 months of expenses, no high-interest debt, and a growing investment portfolio. Even if you’re starting late, it’s never too late to build real wealth.
The goal isn’t to be the richest person on your block. It’s to wake up at 60 without worrying about money. To retire on your terms. To have options. That’s what good net worth looks like.
What to Do Next
Here’s your simple action plan:
- Calculate your current net worth today. List every asset and every debt.
- Find your age group in the benchmarks above. Where do you stand?
- Set one goal: Pay off one debt. Open a TFSA. Invest $100 a month.
- Check your net worth again in 90 days. Adjust. Repeat.
Net worth grows slowly. But it grows faster than you think - if you start now and stay consistent.
What is a good net worth for a 30-year-old in Canada?
A good net worth for a 30-year-old in Canada is between $50,000 and $100,000. This includes savings, investments, and home equity minus debt. If you’re earning $60,000 a year and have no credit card debt, $75,000 puts you ahead of most peers. The key is consistency - saving 15-20% of income and investing in low-cost index funds.
Is my home included in my net worth?
Yes, your home is included - but only the equity you’ve built. That’s the current market value minus your remaining mortgage balance. For example, if your house is worth $700,000 and you owe $400,000, your home adds $300,000 to your net worth. Don’t count the full value - only what you truly own.
How much should I have saved by 40?
By age 40, you should aim for $200,000 to $400,000 in net worth. This means you’ve been saving and investing for 10-15 years. If you’re earning $80,000 a year, this is achievable by putting away $1,000 a month into RRSPs, TFSAs, and low-cost ETFs. If you’re below this, focus on paying off debt and increasing your savings rate - even by 5%.
Can I retire with $1 million net worth in Canada?
Yes, $1 million can support a comfortable retirement in Canada if you manage it well. Using the 4% rule, that’s $40,000 a year in withdrawals. Add Canada Pension Plan and Old Age Security, and you’re looking at $60,000-$70,000 annually - enough for most people outside major cities. But if you own your home outright and have low expenses, $700,000 might be enough.
Why is my net worth going down even though I’m saving?
Your net worth can drop if your debts are growing faster than your savings. Common reasons: taking on a bigger mortgage, buying a new car on loan, or racking up credit card debt. Market drops in stocks or real estate can also lower your net worth temporarily. Check your debt levels first. If they’re rising, fixing that matters more than saving more.
Should I pay off my mortgage early to increase net worth?
It depends. If your mortgage rate is below 4%, you’re better off investing extra cash in index funds - they historically return 7-8% annually. But if your rate is above 5% or you’re stressed about debt, paying it off early gives you peace of mind and reduces risk. Both choices increase net worth - one through growth, the other through security.
Final Thought
Net worth isn’t about impressing anyone. It’s about having control. Control over your time. Control over your choices. Control over your future. The numbers above aren’t rules - they’re signposts. If you’re near them, you’re on the right path. If you’re far behind, it’s not too late. Start today. Track it. Adjust. Keep going. That’s how real wealth is built.