PICKERING, ONTARIO — After nearly two decades in Canada, Mary Ann Tibayan-Ely has built a stable life in Pickering, Ontario. She works hard, raises two children, and has spent years adjusting to the rhythms of her new home. Yet despite almost twenty years of labor and career progression, building lasting, intergenerational wealth remains frustratingly out of reach.
For Tibayan-Ely and millions of immigrant workers across Canada, matching Canadian-born peers in effort and earning power does not translate into equal economic security. A massive financial divide persists, a reality backed by new data from Statistics Canada showing that recent immigrant families lag far behind Canadian-born households in net worth across every income level, with the divide widening dramatically at the top.
The Illusion of High Earnings
Starting out at $11 an hour, Tibayan-Ely steadily climbed the professional ladder, but she quickly learned that higher wages do not equate to financial surplus.
"I’ve been here in Canada for almost two decades," Tibayan-Ely said. "Just like many immigrants, I started from scratch, working hard, learning the system, and slowly adjusted to the new life... But no matter how high my hourly rate was, it doesn’t automatically mean I am able to save big."
The squeeze comes from Canada's soaring cost of living paired with the unique financial burdens carried by immigrants and newcomers. Unlike Canadian-born workers who may benefit from family safety nets or inheritance, immigrants face significant upfront settlement costs, immigration fees, and the ongoing obligation to support relatives back home.
"This is the reality most people don’t know, especially people we know in the Philippines," Tibayan-Ely explained. "Even if you say you are working in Canada, it doesn’t mean you’ll have bigger savings. The cost-of-living is high like rent or mortgage, groceries, transportation, insurance, cellphone, taxes and other bills."
She added that extended family responsibilities further drain resources. "As an immigrant, there are also expenses that you will incur while you’re building your new life in a new country. And sometimes, expenses extend to the financial needs of your extended family in Canada or the Philippines. That’s why your salary might be okay, but when it’s payday you tend to ask yourself, where did it all go?"
The Huge Wealth Gap
The financial pressures described by Tibayan-Ely reflect a systemic pattern identified in the most recent Statistics Canada’s pooled analysis using the Survey of Financial Security (2016, 2019, and 2023). The report confirms that across all income levels, recent immigrant families possessed less wealth than Canadian-born families, with wealth gap widening toward the top of income distribution.
StatsCan data showed that in the bottom income quartile, recent immigrant families hold $65,000 less wealth (a 25% relative gap) than Canadian-born families, while in the lower-middle income quartile, the gap widens significantly to $260,700 less wealth (55% less in relative terms).
Recent immigrant families in the upper-middle income quartile also possess $429,300 less wealth (66% less in relative terms), while those in the top income quartile, the gap peaks at a massive $700,000 shortfall (67% less wealth), showing the largest relative variance anywhere in the income spectrum.
At lower income levels, StatsCan notes the wealth gap is driven mostly by structural and demographic factors, namely delayed access to homeownership, lack of employer-sponsored Registered Pension Plans (RPPs), absence of intergenerational inheritances, and younger family life-cycle stages. If lower-income immigrants matched Canadian-born families on these specific metrics, their net worth can be virtually identical.
However, higher up the income ladder, these factors fail to explain the gap. Even after controlling for homeownership, pension access, demographic differences, and inheritances, high-income recent immigrant families still face an unexplained wealth deficit of $269,500.
Researchers attribute this persistent gap to systemic barriers, including foreign credential underrecognition that delays entry into high-paying positions, missed years of compound growth in employer pensions, and the lack of generational wealth transfers.
Time as the Ultimate Equalizer
Despite the steep hurdles facing newer arrivals, the StatsCan report offers a strong silver lining that over time, the economic divide closes.
Established immigrant families eventually match or surpass the net worth of Canadian-born families across every income tier. At lower income levels, established immigrants actually achieve higher total wealth than their Canadian-born peers, driven by disciplined saving behaviors and extended life-cycle compounding. At higher income levels, they reach full parity.
For Tibayan-Ely, achieving true financial independence has meant shifting her mindset beyond the traditional workplace.
"Honestly, it might be possible [to get rich], but not guaranteed just because you stay longer and work harder," she reflected. "Yes, your salary will increase in time, get promoted and maintain a stable career, but expenses and financial responsibilities are increasing too. Inflation is real. That’s why I realized, working hard is really not enough. I realized that if I want a different financial future, I need to build something beyond my paycheck."
