Canadians have big dreams when it comes to income, or so a recent survey shows.
An online survey of 1,565 Canadians was conducted between May 23 to 26, 2017. In order to qualify, respondents had to be 18 years of age or older and reside in Canada.
The goal of the survey was to figure out how much money Canadians felt they needed in order to be financially comfortable.
The data collected shows that Canadians have high financial ambitions.
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According to a recent Edward Jones press release, Canadians believe they need an average pre-tax salary of $250,000 to feel financially comfortable.
Currently, the country’s average after-tax income is $56,000, as reported in 2015 by Statistics Canada.
When asked how much money they felt they would need in order to live the lifestyle they want, most added another $50,000 bringing their ideal income total, before tax, to $300,000.
“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?” Patrick French, principal of solutions tools and consulting with Edward Jones, said in a recent press release.
“A financial advisor can help you put pen to paper and do the math, outlining the financial steps you need to take to get you closer to where you want to be through a thoughtful conversation and a disciplined process.”
The study also took a deeper dive into the demographical differences when it comes to income expectations. The following results were found:
- Millennials are the most modest. Those between the ages of 18-34, came in lowest among the age groups stating they need close to $166,622 to feel financially comfortable and need at least $299,854 to afford the lifestyle they want.
- Canadians between the ages of 35-54 feel they need an added $60,000 ($227,290) to be financially comfortable compared to millennials.
- Planning for retirement may be impacting Canadians in the 55-64 age group; these respondents averaged needing the highest number of pre-tax income at $398,347. When asked how much they need for the lifestyle they want, the amount dropped by over $70,000 to $325,066.
“The research indicates that financial expectations and needs are continuously evolving through different stages of life,” French said in a recent press release.
“Having a clear view of your goals and understanding how one financially influences the other is the first step towards achieving your lifestyle objectives. A financial advisor can help you navigate the difficult questions and create a solid strategy, tailored to your needs and financial situation, to help you prepare for the road ahead.”