The disparity in income and wealth between Canada’s highest and lowest earners widened in 2025, according to data released Monday by Statistics Canada. The agency reported that the income gap, defined as the difference in disposable income shares between households in the top 40 percent and those in the bottom 40 percent, increased slightly to 46.7 percentage points from 46.4 percentage points the previous year.

This expansion in income inequality was driven in part by slower wage growth for lower-income households compared with the national average, combined with a decline in investment income due to reduced interest payments on savings. At the same time, financial markets experienced gains, and interest payouts decreased, while the labor market showed signs of weakening.

On the wealth front, the top 20 percent of Canadian households controlled 65.7 percent of the country’s total net worth at the end of 2025, amounting to an average of $3.5 million per household. In stark contrast, the bottom 40 percent held just 3 percent of national net worth, averaging roughly $81,650 per household. The gap in wealth concentration between these groups widened by 0.6 percentage points year-over-year, reaching 62.7 percentage points by the end of last year.

Insights from NMP Ltd., an insolvency practice, highlighted how financial pressures continue to be uneven across the population despite some signs of stability. Their recent survey of 2,000 Canadian adults, conducted between March 10 and 11, indicated that Canadians have become more cautious about spending, resulting in the firm’s debt index remaining relatively stable over the past year.

The survey revealed a record average amount of money left at the end of the month—$1,000 as of March, up from $907 in November. However, nearly 43 percent of respondents reported having $200 or less remaining after covering expenses, an increase from 41 percent in the previous quarter. Additionally, 29 percent said their income is insufficient to meet monthly bills and debt payments, up from 25 percent three months earlier.

Amid these challenges, many Canadians appear to be postponing major financial decisions. The survey found that approximately three-quarters of respondents feel that rising costs for essential goods are straining their finances. Grant Baznian, president of NMP Ltd., noted in a statement that many Canadians are managing financial pressures in a shifting and uncertain economic environment that complicates planning and budgeting efforts.