Canadians get rich at a faster pace than Americans

When you’re Canadian, it’s always nice to beat Americans at anything really. Last year, we beat Americans at their favourite sport – getting rich.

Canada ranked eighth in the world for wealthy people in 2016, according to the Capgemini SE’s 2017 World Wealth Report.

In Canada, the number of “high net worth individuals” — defined as people with at least US$1 million in investable assets — rose 11.3 per cent in 2016, from 321,000 to 357,000. While in the U.S., the number of wealthy people grew only 7.6 per cent.

Canada, along with Russia and Brazil all “dramatically reversed course” compared to last year when the number of wealthy people in these countries declined, according to the report.

The highest increase in people joining the ranks of the super-rich was seen in Russia, with the country gaining 19.7 per cent more wealthy people. Indonesia and the Netherlands were tied for second place with a growth rate of 13.7 per cent.

Canada came in eighth place in the ranking of countries by the total number of high net worth individuals, ahead of Australia and behind Switzerland.

This doesn’t take away from the fact that, global wealth is becoming more evenly distributed among nations despite the increase in the number of people with high net worth.

While new people joined the ranks of the rich, the already super reach also just got richer in 2016. The number of ultra high net worth individuals, or people with more than US$30 million in investable assets, grew 8.3 per cent globally in 2016.

“With these gains, (ultra-wealthy people) once again took on their traditional role as the main drivers of (high net worth individual growth,” the report said. “Though they make up only 1.0 per cent of all (high net worth individuals), (ultra-wealthy people) account for more than one-third (34.5 per cent) of all (high net worth individual) wealth.”

The report predicts high net worth individuals will have amassed US$100 trillion in wealth by 2025, a net worth that is projected to grow at an annual rate of 5.9 per cent over the next 18 years.