Albertans are Canada’s top savers and Redditors debate why

That prompted u/BSDnumba123 to jump in with a different view: “Cheaper housing, higher wages, younger average age so that people are in the saving for retirement stage is my guess. A lot is made of taxes. It’s not that dramatic.”

Another commenter, u/BigCheapass, added nuance: “All else equal it probably would, but in this case Alberta doesn't even have low taxes unless you earn big bucks. Their bottom bracket has a pretty steep rate compared to other provinces. For example, someone earning 100k in Alberta would pay about 1.9k more income tax than someone earning 100k in BC.”

u/VancouverSky agreed that recent tax cuts have narrowed the gap: “With the new tax cut, Alberta’s income tax is only marginally higher than BC’s at regular people levels and is lower once you hit mid 100s. Alberta’s personal exemption is roughly twice that of BC last I looked.”

The takeaway? Taxes play a role but don’t fully explain why Albertans save more according to these Redditors.

“It’s the housing costs and demographics”

Many Redditors pointed to housing affordability as the biggest factor. u/joe4942 noted “Gas is way higher in BC and commutes are longer,” hinting at overall cost-of-living pressures.

“I don’t own a car and had a 30ish minute commute to downtown Vancouver by train because we have great transit here," u/ BigCheapass responded. "When my wife lived in Edmonton transit was terrible, owning a vehicle was basically mandatory. I would guess lower or middle earners in Vancouver use transit, but overall Alberta’s costs for basics like housing remain lower.”

“BC’s lower tax rate (starting at 5%) than AB (starting at 8%) would help savings potential, but AB’s lower real estate cost would help them in turn. AB’s higher taxes will make it a bit harder to save but not have that much of an impact by themselves,” u/professcorporate weighed in.

Demographics also surfaced as a key driver. “Are any of those statistics not explained by the younger demographics of Alberta? The Newfoundlanders working in Ft Mac while young are going to be saving, and then spending it down while retired in NF," u/wilfredhops2020 speculated.

“Can confirm," asserted u/alzhang8. "In Fort Mac rn, money is big with lots of newfies. They all go back for retirement.”

Critical context was provided by u/kennedar_1984, who added, “Partly demographics but also the cyclical nature of jobs in Alberta. Anyone who has lived here for more than a few years knows that you need a healthy savings account because the next round of layoffs is just around the corner. Consequently while our salaries are higher we also have to save more than average to offset the years when oil prices tank and we are all out of a job.”

Expert insights on Alberta’s housing, income and savings

Desjardins economists confirm that Alberta’s high savings rate is tied to a powerful combination of strong disposable income and relatively affordable housing. They report Alberta households saved nearly 9% of disposable income from 2020 to 2023, supported by household disposable income over $110,000, ranking among the highest in Canada.

They describe this as a "mix of high disposable income and relatively affordable housing compared to B.C. and Ontario,” while Quebec’s savings rate is driven by “restrained household spending,” despite a lower income.

Similarly, ATB Economics notes how Alberta had the highest disposable income per household in Canada in 2022 — $113,572 — 22% above the national average, reflecting higher wages and employment levels.

They also observe that Alberta’s household debt-to-disposable income ratio remains below the national average, thanks to a relatively flat housing market that prevented excessive mortgage debt accumulation.

Quebec’s surprising thriftiness raises eyebrows

Quebec’s relatively high savings rate puzzled some users, given its lower average income.

“I always wonder how much trends like this go away if you adjust for age," u/YqlUrbanist noted. "Quebec is certainly the outlier (which makes sense, in many ways Quebec operates more like a European country than the rest of Canada)...”

Others Redditors like u/antelope591 noted Quebec’s disciplined habits: “Numbers don’t surprise me... For all the shit Alberta gets on Reddit it always comes out looking good as far as pure numbers are concerned.”

Desjardins backs that view: Quebec households spend approximately $15,000 less than the national average, helping elevate savings despite below-average disposable income. Middle-income Quebec households spend roughly $22,500 less than their Ontario counterparts.

Maritime provinces: negative savings reflect retirement realities

Negative savings rates in Nova Scotia (-3.7%) and New Brunswick (-1.6%) also sparked discussion.

Older populations drawing down savings and high housing cost burdens (27% of income on shelter) similar to expensive B.C. were blamed for this trend. u/ joe4942 reflected that “an aging population combined with lower income levels explain this trend.”

What does it all mean for Canadians?

The Reddit conversation reveals that savings rates are about more than raw numbers: housing affordability, age demographics, income volatility and even culture shape how and whether Canadians put money aside.