This Statistics Canada study examines the wealth, financial security, and retirement plans of individuals living in employed low-income families, compared to those in not-employed low-income families, and those in employed non-low-income families.

Wealth, or net worth, is defined as the difference between a family’s assets and its total debts. The analysis showed that the average wealth of low-income families with at least one employed family member is higher than that of low-income families without an employed family member, but is significantly lower than that of non-low-income families with at least one employed family member.

The author notes that 69 percent of employed low-income families carry debt, compared to 44 percent of other low-income families. However, a large proportion of that debt is in the form of residential mortgages, offering the prospect of home ownership and the economic advantages it carries.

Compared to not-employed low-income families, a larger proportion of employed low-income families report that they are able to pay for unexpected expenses and are not falling behind on bill payments.

A larger proportion of employed low-income families are making retirement preparations and anticipate having more diverse sources of retirement income than not-employed low-income families.