![\"Man](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/04\/deb7b9c902144cad3ce7a6a026cf961d.jpeg\")
Man looking stressed <\/p>\n Man looking stressed <\/p>\n
Surging real estate values and decades of steady investments are turning more Canadians into millionaires \u2014 even if they don\u2019t realize it yet.<\/p>\n
According to the 2025 UBS Global Wealth Report, the number of so-called \u201ceveryday millionaires\u201d \u2014 people with wealth between US$1 million (C$1.38 million) and US$5 million (C$6.9 million) \u2014 has quadrupled globally since 2000, now reaching nearly 52 million worldwide (1). In Canada specifically, about 2.1 million people, or approximately 5% of the population, had a net worth exceeding US$1 million as of early 2025.<\/p>\n
Much of that growth is tied to real estate. As home values rose in major cities and even mid-sized markets over the past decade, many middle-class homeowners became millionaires without making any conscious investment decisions. They simply stayed in place.<\/p>\n
But here\u2019s the thing: A seven-figure net worth doesn\u2019t automatically mean you\u2019re financially set for retirement. And many of these new millionaires don\u2019t feel wealthy \u2014 because in practical terms, they may not be. Here\u2019s why.<\/p>\n
Most Canadians agree they need around $1.7 million for a comfortable retirement, according to a 2026 BMO Retirement Survey (2). But if your $1 million net worth includes a $900,000 home and only $100,000 in cash savings, you\u2019re likely well short of what you\u2019ll actually need to fund a 30-year retirement \u2014 even before factoring in inflation.<\/p>\n
Financial researchers have started using the term \u201chidden millionaire\u201d to describe people who built most of their wealth through home equity and retirement savings, but don\u2019t think of themselves as investors or high-net-worth individuals. They didn\u2019t pick stocks or build a portfolio. They paid their mortgage, contributed to their Registered Retirement Savings Plan<\/a> (RRSP) and watched their home value appreciate. Now they\u2019re sitting on a million dollars \u2014 and have no idea what to do with it.<\/p>\n If you\u2019ve crossed the seven-figure threshold without consciously managing your wealth, there\u2019s a real chance your money isn\u2019t working as hard as it could, or is slowly eroding. Here are some considerations:<\/p>\n Lifestyle creep is a slow leak. The biggest threat to any millionaire\u2019s wealth isn\u2019t a market crash \u2014 it\u2019s gradually spending more as your income rises. Retirement savings that look impressive today can shrink faster than expected if your spending isn\u2019t kept in check. The simple principle of living below your means doesn\u2019t disappear once you hit a million dollars: It becomes more important.<\/p>\n Story Continues <\/p>\n Concentrated wealth is a vulnerability. Many hidden millionaires have most of their net worth tied up in one or two places \u2014 typically a home, and a single employer\u2019s pension or stock plan. That concentration creates risk. If property values in your area decline, or if a company\u2019s shares drop sharply, a large portion of your wealth can evaporate. A 2025 study in the Journal of Asset Management found that broad diversification across asset classes reduces risk and improves returns compared to putting everything all in one place, even through major market shocks (3).<\/p>\n Cash sitting idle is money left behind. A common mistake when rolling over or transferring registered accounts is failing to reinvest funds. Money that sits as cash inside a Tax-Free Savings Account<\/a> (TFSA) or Registered Retirement Income Fund<\/a> (RRIF) isn\u2019t growing. A 2025 TD Bank survey states that about 4 in 10 Gen Z and Millennial Canadians keep most of their TFSA balances as cash \u2014 and are missing out on the account\u2019s primary advantage: Tax-free compounding (4).<\/p>\n Read more: Here are 5 essential moves to make once you\u2019ve saved $10,000<\/a><\/p>\n The good news is that none of these scenarios require anyone to start over from scratch. A few intentional shifts in how you manage your money can make a significant difference over the long run.<\/p>\n Get professional guidance. One of the most consistent habits among wealthy Canadians is working with a qualified professional. However, many hidden millionaires who didn\u2019t consciously build their wealth through investments don\u2019t think to seek that kind of help. A fee-only financial advisor or certified financial planner can help you assess your readiness for retirement, identify gaps and build a strategy that fits your specific situation. The Financial Planning Standards Council (FP Canada) keeps a national directory of certified planners (5).<\/p>\n Diversify beyond your home. Home equity is wealth \u2014 but it\u2019s concentrated into a single, illiquid asset. Consider working with an adviser to convert some of that equity into a diversified portfolio inside your TFSA, RRSP or other non-registered account. Broad-based exchange-traded funds<\/a> (ETFs), bonds, and other assets classes can help spread risk and generate income in retirement.<\/p>\n Maximize your registered accounts. The TFSA annual contribution limit is $7,000 for both 2025 and 2026, and any unused portion from previous years carries forward. Money invested inside a TFSA grows completely tax-free and can be withdrawn any time without penalty \u2014 making it one the most powerful tools available to Canadian retirees. For those still working, continuing to contribute to an RRSP can reduce taxable income now while building retirement assets for the future.<\/p>\n Plan your withdrawals carefully. For higher-income retirees, the order in which you draw from your accounts is important. As of 2025, the clawback for Old Age Security (OAS) benefits happens once your net income exceeds $93,454. Benefits stop completely once earnings hit $152,062, according to the Government of Canada (6). If you draw strategically from your TFSA, RRSP or RRIF, and non-registered accounts in the correct sequence, you could significantly reduce your tax bill over a 20- to 30-year retirement.<\/p>\n Reaching a seven-figure net worth is a serious achievement, but it\u2019s still not crossing the finish line. Many Canadians are becoming millionaires without realizing it, and without the financial habits or professional support needed to protect and grow that wealth through retirement.<\/p>\n The mindset shift that\u2019s most important isn\u2019t complicated: Start thinking of yourself as an investor rather than just a homeowner or money-saver. That means diversifying your assets, keeping your lifestyle costs in check, making your registered accounts work harder for you and, when in doubt, get professional advice before making big financial decisions.<\/p>\n Wealth is more than just reaching a specific number. It\u2019s about making sure that number lasts throughout your sunset years.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n UBS (1<\/a>); BMO (2<\/a>); Research Gate (3<\/a>); TD (4<\/a>); FP Canada (5<\/a>); Government of Canada (6<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Man looking stressed Surging real estate values and decades of steady investments are turning more Canadians into millionaires…\n","protected":false},"author":2,"featured_media":361501,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,275,3205,246,37476,20095,111,139,69,244,245,4657],"class_list":{"0":"post-361500","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-canada","10":"tag-dave-ramsey","11":"tag-finance","12":"tag-millionaires","13":"tag-net-worth","14":"tag-new-zealand","15":"tag-newzealand","16":"tag-nz","17":"tag-personal-finance","18":"tag-personalfinance","19":"tag-retirement-savings"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/361500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=361500"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/361500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/361501"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=361500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=361500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=361500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}