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September 18, 2021

Drop in numbers of super rich Canadians

It's a first-world problem, but still an interesting one. It turns out that the number of ultra-rich Canadians, people who have a net worth of $30 million, is shrinking, according to a recent study done by UBS and Wealth-X.

The number of super wealthy dropped to 4,980 in 2013 from 5,015 in 2012, according to the study. While there's been a 0.7 per cent drop between the numbers, it turns out that the ultra rich still account for a large amount of wealth, $595 billion US. Now that's a lot of dough between a small group of people.

But the drop in numbers stands out among the other developed countries. Our friendly neighbours down south saw their number of super wealthy jump up to 65,505 and their elite have a wealth of $9 trillion US. Meanwhile, the number of wealthy individuals around the world rose to 199,235, a record high, with a combined wealth of $27.8 trillion US.

The bump in super rich is thanks to wealthy individuals in United States and Europe rather than China and Brazil, which actually saw a drop due to economic downturns. But what's happening in Canada? It turns out that the slowdown in Asia is affecting our commodities and the wealth of the super rich, according to the Huffington Post.

It's tricky to compare data from the 2006 census data and the recently released National Household Survey since there's been a change in how the data was collected. But the recent data shows us that be to a part of Canada's top one per cent, you'd need to earn an annual income of $191,000, while the median national household income sits at $27,800. Some of the richest Canadians earn a whopping seven times than many Canadians.

Income inequality is a hot topic in the United States, but maybe it's time that we take a look at fixing it here. One suggestion made by the Ontario Chamber of Commerce is to tie the province's minimum wage to inflation.

How do you think Canada can fix income inequality?

By Josephine Lim, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...