Savers, investors and investment income

The number of Canadians reporting investment income fell for the third straight year in 2003, although not nearly as much as in the previous two years. The amount of investment income received in 2003 was down slightly from 2002.

Nearly 7.4 million people reported just over $30.1 billion of income from investments, according to data from income tax returns filed in the spring of 2004.

Investment income recipients are either savers (those who reported interest income) or investors (those who reported dividend income from taxable Canadian corporations). Investors may have also received interest income.

The number of recipients slipped 1.3%, well below the rate of decline of about 6% in each of the two previous years. The number of people reporting investment income fell in all provinces and territories except Alberta (+1.1%) and British Columbia (+0.8%).

The investment income Canadians received edged down 0.6% in 2003, in sharp contrast to the 12.2% decline in 2002. (In comparisons involving dollar amounts, all figures for previous years have been adjusted for inflation, as measured by the Consumer Price Index.)

The proportion of filers reporting investment income continued to decline in all provinces and territories. In 2003, 33% of taxfilers reported having received investment income, down from 34% in 2002 and 39% in 2000.

Median investment income remained unchanged at $500 for the third year in a row. In other words, one-half of those reporting investment income received more than $500 and half received less.

Only in Newfoundland and Labrador was there a gain in median investment income. Median investment income remained the same in nine provinces and territories, while it declined in Nova Scotia, Quebec and Nunavut.

The number of investors (those reporting dividends) remained stable between 2002 and 2003 although the dividend and interest income they received increased 2.0%. In 2003, these approximately 3 million investors reported $22.8 billion of investment income.

The number of savers (those who reported interest income only) declined 2.2% to 4.4 million in 2003. This rate of decline was not nearly as dramatic as in 2002 when the number of savers fell by 10.0%.

Interest income fell by 7.8% to $7.3 billion in 2003. Again, however, this decline was not nearly as steep as in 2002 when interest income fell 25.5%.

Note: Investment income refers to the interest and dividend income received by savers and/or investors from investments in non-tax-sheltered vehicles. Income earned from investment held under the terms of registered retirement savings plans or registered income funds, for example, are excluded. Capital gains are also excluded.

Definitions, data sources and methods: survey number 4106.

The databanks Canadian savers (17C0009, various prices), Canadian investors (17C0007, various prices), Canadian investment income (17C0008, various prices) and Canadian capital gains (17C0012, various prices) are now available for Canada, the provinces and territories, cities, towns, census metropolitan areas, census divisions, federal electoral districts, forward sortation areas (the first three letters of the postal code) and letter carrier routes.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (1-866-652-8443; 613-951-9720; fax: 1-866-652-8444 or 613-951-4745; saadinfo@statcan.gc.ca), Small Area and Administrative Data Division.