The number of Canadians reporting investment income and the amount of income they received both fell sharply in 2002.

According to Statistics Canada, just under 7.5 million people reported $29.5 billion of income from investments in 2002. The number of recipients fell 6.3% from 2001, while the amount of investment income fell 12.1%, after adjusting for inflation using the Consumer Price Index.

Although the number of people reporting dividends increased slightly from 2001 to 2002, their investment income fell 6.2%. This was caused by declining stock markets and the drop in interest rates. In 2002, just under 3 million investors reported $21.8 billion of investment income.

The decline in investment income in 2002 was most apparent for those who reported interest income only. The number of people who reported interest income declined 10% to 4.5 million. The interest income they received fell 25.5% to $ 7.7 billion, a result of continuing declines in interest rates since 2000.

In spite of these declines, median investment income remained unchanged at $500. In other words, one-half of those reporting investment income received more than $500 and half received less.

Only in the Northwest Territories and Nunavut was there an increase in median investment income, as well as an increase in the proportion of taxfilers reporting it says StatsCan. Median investment income remained the same in six of the provinces and territories, while it declined in Newfoundland and Labrador, Ontario, Manitoba, Saskatchewan and British Columbia. In all these provinces, the proportion of people reporting investment income declined relative to the previous year.

Data for the study came from income tax returns filed in the spring of 2003.