A PROFILE OF CANADA'S NEXT DOOR MILLIONAIRE POLL

Consumer Goods

WHO THEY ARE, WHERE THEY ARE, AND ATTITUDES OF THE RICH, BUT NOT SO FAMOUS

10 January 2000

Consumer Behavior

A Profile of Canada's "Is That Your Final Answer?" Next Door Millionaire Poll

-- Who they are, Where they are, and Attitudes Of The Rich, but Not So Famous --

The Affluent Canadian Report is a syndicated study run by Toronto-based David Safran, Senior Vice President of the Financial Services Division of the Angus Reid Group.

A sample of 250 Canadians reported that their household has at least $1 million in financial assets, defined as the value of the household's investments/savings and excluding other assets such as a principal residence, other homes, businesses and the household possessions.

The survey was a self-completed questionnaire mailed to respondents between August and September 1999. This report excerpts findings about these 250 respondents, who represent approximately the top 2% of Canadian households by wealth.

Who Are Your Next Door Millionaires?

The Millionaires of Canada have a very different demographic profile than that of the general Canadian population.
They are older, on average (68% are 55+ years) and tend to be over-represented, within the survey, among two lifestage groups; first one being Households without Children (64%) and the second one being Retirees (40%).
Millionaires hold higher education levels than the general adult population. Almost three-quarters (82%) have attended college/university (vs ~63% of general adult population). In fact, over one-third (38%) of the Millionaires who responded to the survey have post graduate university credentials - a rate much greater than the general adult population (~9%).
In terms of employment status, Millionaires are over-represented in two categories: self-employed (35%), and retired (40%). In each case the representation among Millionaires is over twice the rate for the general adult population (10% and 19% respectively). However, Millionaires are also drawn from a diverse list of other types of occupations. These include: farmers (4%), artists (1%), consultants (4%), Physicians (5%) and service/retail (4%).
However, business ownership is clearly an important source of wealth in Canada. Just over half (58%) of the Millionaires in our sample indicated that someone within the household entity owns a business.

Household Income

While it is expected that the household income of Millionaires is much greater than the average Canadian family, not all of the Millionaires have six digit incomes (74% of respondents have six digit annual household incomes).
Indeed, about one-quarter (26%) of the survey respondents reported household incomes below $100,000. A portion of this group surveyed are retired (40%) and thus are likely drawing their annual household income earnings from these financial assets.

Generations of Wealth

When asked if they expect to inherit money, a majority (66%) say that they do not.
Among the minority (31%) who do foresee receiving an inheritance, the expected amounts vary widely: from under $100,000 (by 36% of these Millionaires) to over a million dollars (by 10%).

Where Are Your Next Door Millionaires?

Millionaires are over-represented in the provinces of Ontario (49% of Millionaires vs ~38% of the national population) and British Columbia (17% of Millionaires vs ~13% of the national population). They are under-represented in Quebec (14% of Millionaires vs ~25% of the national population) and the Atlantic Provinces (5% of Millionaires vs ~8% of the national population). Their representation in the Prairie Region is approximately the same as the general population.

Attitudes and Lifestyles of the Rich but "Not so Famous"

Most Canadian Millionaires (89%) believe their success financially, and their "money allows [them] to help other people" where a smaller minority (36%) believe "money [to be] a way of measuring how well [they're] doing compared to everyone else".
Almost half (48%) of the respondents to the survey agreed that their financial success, or money provides them with "a way of measuring [their] own performance to [themselves]" and less (16%) believe their money "to show other people that [they] are someone".
For the majority (84%) of the Millionaires surveyed "money allows you to protect your family's future" and 88 percent believe it allows "you to do the things you want to do".
Less than one quarter (21%) feel "money gives you power and control over other people".

Lifestyles of the Rich

Perhaps a reflection of their age, the majority (81%) of Millionaires tend to believe that people are responsible for their own fortunes.
Cliches about the lifestyles of the rich are supported through the findings of this survey. Both ends of the spectrum, the "jet-setters" who live for the moment and, the more sedate and traditionally wealthy Millionaires are represented in the survey sample.
Two in five (41%) respondents agree that they are "enjoying today without worrying about tomorrow". However, half (50%) say that they consider themselves "more traditional than experimental". And one quarter (25%) agree that "things are changing too fast these days for them to feel comfortable".
This dichotomy in lifestyles is also indicated by the type of leisure activities that Millionaires typically engage in. These activities cut across more sedate pursuits such as reading (25%) and gardening (19%). Though a portion are more active, either on the golf course (23%) or the jogging track (12%).
Travel (24%), attendance at cultural activities (23%) and entertaining (12%) are also reported by the Millionaires as their leisure activities. A portion (10%) report that they are active in volunteer or charity work.

Millionaires On-Line