You need a net worth of 11.8 million euros to be among the richest one percent. Wirestock Creators/Shutterstock
Americans need a net worth of at least $5.8 million (€5.4 million) to be in the top percent of wealth.
Monaco has the highest limit for the top one percent at almost $12.9 million (twelve million euros).
The number of high-net-worth people worldwide is expected to increase by 28 percent by 2028.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Americans need at least $5.8 million (5.3 million euros) in net worth to be in the top one percent of wealth in their country – less than half the one percent limit for Monaco.
The new “Wealth Report 2024” by real estate agent Knight Frank found that the limit for the top one percent of wealth in Monaco is almost $12.9 million (11.8 million euros), followed by Luxembourg at $10.8 million (9.9 million euros). ) and Switzerland with 8.5 million dollars (7.8 million euros). The USA is fourth on the list. In Germany you “only” need 3.2 million euros.
Knight Frank reports that the limit in the USA has increased by almost 15 percent compared to the previous year, from 5.1 million dollars (4.7 million euros). The country’s robust economy, which fueled strong asset growth, pushed the limit higher, the report said. Wealth measured by Knight Frank includes investments, cash and assets such as homes.
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The report notes that it is much easier to break into the top one percent than to become an Ultra-High Net Worth Individual (UHNWI), which Knight Frank defines as having a net worth of at least $30 million. There are currently 627,000 people with UHNWI status worldwide; in 2023 there will be 4.2 percent more – and 7.2 percent in North America. Knight Frank expects the total number of wealthy people worldwide to increase by 28 percent over the next five years, particularly in India and mainland China.
“The improving interest rate outlook, the robust performance of the U.S. economy and a strong rise in equity markets have supported wealth creation globally,” Liam Bailey, Knight Frank’s global head of research, said in a press statement.
Americans, by and large, are getting richer. The Survey of Consumer Finances The US Federal Reserve revealed that between 2019 and 2022, the average net worth, adjusted for inflation, will rise to 192,000 US dollars (177,500 euros), a growth of 37 percent. This was fueled by higher real estate and stock prices as well as pandemic-era government stimulus programs.
Among Americans in the 80th to 90th income percentiles, median net worth rose 69 percent during that period, while those in the bottom 20th percentile saw median net worth increase 24 percent. In 2022, the median net worth for the top 10th percentile was $2.56 million (€2.37 million), while the net worth for the bottom 20th percentile was just $14,000 (€13,000).
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The Knight Frank report finds that Millennials are expected to become the richest generation ever, with a $90 trillion (€83 million) wealth transfer from the Silent Generation and Boomers to younger generations over the next two decades becomes.
Inequality between rich and poor countries also continues to increase, as data from the World Bank shows. Countries like Monaco continue to attract wealthy people because of their tax laws, the report said.
“Our results confirm the significant differences in wealth distribution between countries, with smaller centers tending to have higher thresholds,” said Bailey.
Read the original article in English here.