Canadians have significantly higher incomes in real terms now compared to 20 years ago. In the case of individuals ages 25-54, median incomes climbed 21.5 per cent between 2001 and 2021. All incomes for this chart are measured in constant 2021 dollars to remove the effects of inflation.
On the other hand, house prices soared over much of that period, which means anyone buying a home now is probably worse off than a prospective homebuyer in 2001.
Seniors, on the other hand, have been big winners. The incomes of individuals 65 and over have risen 28.8 per cent in real terms over the past 20 years. If you also count any income they draw from their TFSAs (not included in the chart), they are doing even better.
In addition, most seniors have enjoyed a windfall in terms of their net worth as they have benefited from the rising price of homes.
This suggests that if any group is in need of more financial support from government, it is working-age Canadians, not seniors.
Frederick Vettese is former Chief Actuary of Morneau Shepell and author of the PERC retirement calculator (perc-pro.ca)
