Richest Households Saved Less

Canada’s richest households made 5.2 per cent more last year than in 2020, but net saving among that top quintile dropped, says Statistics Canada. Further, households in every age group decreased their average net saving in the fourth quarter of 2021 compared with the previous quarter. Household income for the top quintile was $178,100 in 2021, up by 5.2 per cent from $169,300 in 2020. Household income for the lowest quintile was $34,000 in 2021, up by 2.9 per cent from 2021. Average household net saving by income quintile shows for the highest income quintile, net saving was $13,843 in the fourth quarter of 2021, down by 12 per cent from $15,657 in the third quarter and down by 17 per cent from $16,711 in the fourth quarter of 2020. For the lowest income quintile, net saving was negative $7,479 in the fourth quarter of 2021, down by 14 per cent from negative $6,584 in the third quarter and down by 15 per cent from negative $6,482 in the fourth quarter of 2020. One explanation is that the easing of pandemic restrictions increased opportunities for households to spend.