Much like families themselves, family finances in Canada is a topic characterized by diversity, complexity and perpetual evolution. Family income is no exception. 2016 Census data shows that households across Canada receive income from a variety of sources, and these economic arrangements change over time as families adapt and react to social, economic, cultural and environmental forces.
The complex and multi-faceted nature of family finances can make it a difficult topic to fully comprehend. No measure of family finances exists in isolation, and all are interconnected: if a family’s income is too low, then it may be impossible for them to build savings; if expenses are too high, debt may be just around the corner; if debt is too high, it can reduce family wealth – and so on. However, much can be learned about the whole of finances by examining the topic through a family lens.
Every family household has its own unique constellation of income sources that they manage to fulfill their obligations at home and in their communities. These arrangements typically aren’t static – they evolve throughout the life cycle as family circumstances change, along with the resources available to them.
To explore this topic in further detail, the Vanier Institute has published Modern Family Finances: Income in Canada (January 2018).
- In 2015, the total median household income in Canada was approximately $70,300 before taxes ($61,300 after taxes), and $34,200 before taxes (just under $30,900 after taxes) for individuals.
- Household income included revenue from a variety of sources, including employment income (approximately 71% of Canadians received employment income), investments (30%), CPP/QPP benefits (23%), OAS/GIS benefits (18%), the Canada Child Tax Benefit (11%), Employment Insurance benefits (9%), social assistance (5%) and more.
- Incomes are lower than the national average and low-income rates are higher for women; First Nations, Inuk (Inuit) and Métis people; immigrants (particularly for recent immigrants and non-permanent residents); visible minorities; and persons living with disabilities.
- In 2015, nearly one-third (32%) of married or common-law couples in Canada received “fairly equal” incomes, although, on average, women earned an estimated $0.87 for every dollar earned by men.
- Debt is consuming a smaller share of household income than in previous decades, with the share of income devoted to servicing the interest on household debt falling from 10.8% in 1991 to 6.4% in 2015.
- One in five (19.8%) seniors in Canada (1.1M) reported that they worked at some point in 2015 – nearly twice the rate recorded in 1995 (10.1%).
- Many Canadians of all ages plan to keep working to ensure sufficient income as seniors, with more than one-third (36%) reporting in 2014 that ongoing employment earnings are a part of their financial retirement plan.
Income in Canada is a part of the Vanier Institute’s Modern Family Finances series, which addresses particular topics such as income and expenditures; savings and debt; and wealth and net worth. Subsequent editions in this series will focus on unique experiences such as family finances among military and Veteran families, families on the move, and families living with disability.
This bilingual resource will be updated periodically as new data emerges. Sign up for our monthly e-newsletter to find out about updates, as well as other news about publications, projects and initiatives from the Vanier Institute.
Download Modern Family Finances: Income in Canada from the Vanier Institute of the Family.