A newly released poll by Edward Jones, a financial services firm, reports that most Canadians believe they need a pre-tax salary of $250,000 to feel financially comfortable.
Meanwhile, the median income according to a 2015 survey by Statistics Canada sits at $56,000 after tax.
“It’s encouraging to see Canadians have a general idea of where they want to be, but have they actually sat down and thought about the lifestyle they want in detail?” said, Patrick French, a principal of solutions tools and consulting with Edward Jones.
While the majority of Canadians believe they need a $250,000 salary to feel financially comfortable, most would like a $300,000 salary before taxes to “have the lifestyle they truly desire”, says Edward Jones.
The survey divided its questions into two parts, the amount it would take to feel financially comfortable, and the amount it would take to live a desired lifestyle. The responses also categorized the respondents into different age brackets.
For millenials, or those aged 18 – 34, the average salary to feel financially stable was $166,622, the lowest of all three demographics. To live the lifestyle they desired, millennials felt they needed an average of at least $299,854 per year.
For Canadians aged 35 – 54, respondents believe they need an average pre-tax salary of $227,290 to feel financially stable. Edward Jones theorizes that the $60,000 jump between millenials and baby boomers might be from the costs of family financial responsibilities.
For the last age group, people aged 55 – 65, respondents believe they need an average of $398,347 to feel financially stable. Edward Jones says that one factor for this high desired salary average could be retirement planning. Additionally, the firm says that people in this demographic may have accumulated more unwanted financial responsibilities than lower age brackets.
“The research indicates that financial expectations and needs are continuously evolving through different stages of life,” said French. “Having a clear view of your goals and understanding how one financially influences the other is the first step towards achieving your lifestyle objectives.”
The survey was conducted in May 2017, and recorded the answers of 1565 Canadians.
