Money
Where Does the World’s Ultra-Wealthy Population Live Today?
Where Does the World’s Ultra-Wealthy Population Live Today?
The pandemic, geopolitical tensions, and supply chain disruptions have thrown the world into disarray in recent years, but that hasn’t stopped the world’s ultra-wealthy population from growing at a strong clip.
New data from this year’s Wealth Report by Knight Frank shows that the number of Ultra-High Net Worth Individuals (UHNWIs) grew 9.3% between 2020 and 2021. Nearly all regions saw an increase in ultra-wealthy people over the time period.
The above visualization from the report explores the global distribution of uber-affluent people. Below, we’ll also look at how the populations are projected to grow in the future.
The World’s Ultra-Wealthy, by Region
UHNWIs are defined as having net assets of $30 million or more, including their primary residence.
With over 230,000 UHNWIs in 2021, North America has the largest subset globally, followed by Asia at nearly 170,000. Over the last year, the ultra-wealthy population rose 12.2% and 7.2% across these regions, respectively.
Region | UHNWIs (2021) | Change (2020–21) |
---|---|---|
North America | 233,590 | 12.2% |
Asia | 169,889 | 7.2% |
Europe | 154,008 | 7.4% |
Australasia | 24,245 | 9.8% |
Latin America | 10,337 | 7.6% |
Middle East | 9,717 | 8.8% |
Russia & CIS* | 6,542 | 11.2% |
Africa | 2,240 | -0.8% |
World | 610,569 | 9.3% |
*Commonwealth of Independent States
Following North America and Asia is Europe. In 2021, the top countries for the ultra-wealthy were France (30,000), Germany (28,000), U.K. (25,000) and Italy (17,000). On a per capita basis, Monaco is the highest worldwide, at five people per thousand residents.
Interestingly, the ultra-rich in Russia & CIS (6,500) grew the second fastest across all regions, at 11.2%. Rebounding oil prices, property prices, and stock market valuations likely bolstered this growth. However, the crippling sanctions and economic fallout resulting from the invasion of Ukraine could substantially impair oligarch wealth for many years to come.
Growing Fast
How will UHNWI populations change in the next five years?
Globally, the number of ultra-rich is projected to increase a staggering 28% by 2026. (Still, it’s worth noting that growth between 2016-2021 was almost three times this rate, at over 75%.)
Asia is projected to have the highest growth rate, along with Australasia. In five years, UHNWIs are set to rise 33% in both regions. Singapore is projected to see its ultra-rich population grow 268%, while the ultra-rich living in mainland China are anticipated to grow over 42%.
Meanwhile, North America is projected to see 28% growth, or reaching a total of 300,000 UHNWIs by 2026.
Significant growth is also projected across Latin America. Amid rampant hyperinflation, Argentina is estimated to see a 38% expansion in its ultra-wealthy population.
Behind the Scenes
What is fueling this growth in UHNWIs worldwide?
Sky-high asset prices and a real estate boom are two drivers behind this trend, according to Knight Frank. Ultra-low interest rates, which declined during the pandemic, is another.
Given cheap borrowing costs, the ultra-wealthy have more leverage to build their wealth, such as buying more property or investing in financial assets. In fact, the average UHNWI owns 2.9 properties.
It’s worth noting that strong GDP projections often underlie wealth projections. The IMF predicts that a post-pandemic recovery will be robust. However the crisis in Ukraine could pose meaningful risks to the global economy, especially for inflation and financial markets.
For instance, Russia contributes 12% to the global oil supply, a key factor behind inflation. At the same time, Ukraine supplies 90% of America’s neon—an essential material used in the semiconductor industry—which could further exacerbate supply chain issues.
Money
Who Expects to Get Richer in 2024, by Both Generation and Gender
A survey of 600 high net worth individuals revealed there’s one subset of people who are confident of making it in 2024.
Who Expects to Get Richer in 2024, by Generation and Gender
This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.
The jury is still out on how the global economy is expected to perform in 2024, but as seen during the pandemic, economic turmoil sometimes provides opportunities for the wealthy.
We visualize the percentage of high net worth individual (HNWI) respondents who expect their wealth to increase in 2024, categorized by generation and gender, from the Knight Frank Next Gen Survey, accessible in their latest wealth report.
The survey covered 600 global HNWIs, who are individuals with more than $1 million in assets or make more than $200,000 a year, and then categorized their responses by gender and generation.
Affluent Gen Z Women Eye Financial Gains in 2024
At a glance, there’s a very apparent generational difference in the expectations of getting richer in 2024.
About half (52%) of the surveyed Baby Boomers think their assets will grow, compared to Gen X (56%), Millennials, (69%), and Gen Z (75%).
Group | Male | Female | Overall |
---|---|---|---|
👴 Boomer | 53% | 50% | 52% |
👩🦳 Gen X | 56% | 56% | 56% |
👩🦱 Millennial | 75% | 64% | 69% |
🧑🦰 Gen Z | 69% | 81% | 75% |
👨👩👧👦 All Generations | 68% | 63% | 65% |
Note: Percentage of respondents who said they expect their wealth will increase in 2024.
There’s also a noticeable gender difference. Men tend to be more optimistic than women, with one glaring exception.
A staggering 81% of the surveyed high net worth Gen Z women expect to make hay this year, making them the most optimistic of all the groups.
This corroborates a trend where Gen Z women were also the most optimistic in retirement planning. As CNBC reports, a combination of newer avenues of financial resources, and an openness towards advice, has given them a more optimistic attitude than their older counterparts.
Meanwhile, American Millennials are expected to become the richest generation ever as a $90 trillion asset transfer between Boomer parents and Millennial children begins to take place over the next two decades.
A huge percentage of that wealth comes in the form of property assets accumulated by generations before them. This especially includes houses, whose prices have skyrocketed over the last two decades.
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