Canadian millennials are doing much worse than the previous generation. New Statistics Canada (Stat Can) data shows millennials make much more than Gen X did at their age. Despite significantly higher wages, they pay much more than the last generation did for basic necessities. That’s further complicated by the fact they also pay more in taxes.
Millennials Make A Lot More Than The Last Generation
Despite the perception of broke Millennials, they’re earning more than past generations. At the median age of 31, Canadian Millennial households took home an average of $90,047. This is 18.27% higher than Gen X earned at the same age, after adjusting for inflation. More money doesn’t exactly translate to greater wealth in Canada though.
Canadian Household Disposable Income By GenerationThe breakdown of average disposable income for Millennials when the cohort was at a median age of 31, vs Gen X at the same period. Numbers are inflation adjusted to 2019 dollars. Source: Bank filings, Better Dwelling.
Millennials Paid More In Taxes Than Gen X
Mandatory government transfers, aka taxes, are significantly higher for Millennials than their previous cohort. At the median age of 31, Canadian Millennial households paid an average of $36,170. The rate is 22.24% higher than Gen X did at the same age, which for those keeping track – it is higher than the wage bump they got. Lower inflation adjusted take home pay is problematic by itself, but there’s more…
Canadian Household Spending By GenerationThe breakdown of average spending for Millennials when the cohort was at a median age of 31, vs Gen X at the same period. Numbers are inflation adjusted to 2019 dollars. Source: Bank filings, Better Dwelling.
Millennials Spend More, Much More, On Shelter
Stat Can concluded Millennials may be worse off due to higher spending on necessities. At the median age of 31, Millennial households pay on average $18,428 for housing, water, electricity, gas and other fuels. This is a whopping 31.91% higher after adjusting for inflation, compared to the previous Generation. This doesn’t adjust for the fact that millennials are likely to have a smaller household than the previous generation.
The numbers help to explain what most Millennials already know – they’re worse off. This is despite making significantly more money than previous generations. Millennials spend more on taxes, and necessities than the previous generation. The needle was supposed to move the other way, wasn’t it?
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