Edward Jones poll: Canadians believe they need to earn $250,000 to feel financially comfortable

Majority feel an income of $300,000 is needed to live the life they truly desire

Mississauga – October 24, 2018 – Canadians have big dreams, according to a recent survey from Edward Jones. The poll conducted by Leger, found that Canadians believe they need to an average pre-tax salary of $250,000 to feel financially comfortable. This stands in stark contrast with the country’s median, after-tax income of $56,000 as reported in 2015 by Statistics Canada.

According to the data, Canadians’ financial ambition is high: when asked how much money individuals feel they would need to have the lifestyle they truly desire, 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?” said, Patrick French, principal of solutions tools and consulting with Edward Jones. “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.”

They study also took a deeper dive into the demographical differences when it comes to income expectations and found:

• Millennials the most modest. Those aged 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 desire.
• Family matters. Canadians aged 35-54 believe they need an added $60,000 ($227,290) to be financially comfortable compared to millennials, which may be attributed to familial financial responsibilities.
• Planning for retirement could 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 figure dropped by over $70,000 to $325,066, which signals this age group may be saddled with unwanted financial responsibilities.

“The reseach indicates that financial expectations and needs are continuously evolving through different stages of life," added 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. 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.”

*Regional data is available upon request.

This news release presents the findings of an online survey of 1565 Canadians between May 23 to 26, 2017. In order to qualify for this survey respondents had to be 18 years of age or older and reside in Canada.

About Edward Jones

Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange.