Knight Frank has released its 2021 Wealth Report which found that the global Covid-19 pandemic has proven good news for the super rich due to surging asset prices driven by lower interest rates and fiscal stimulus. The ultra-high-net worth population (individuals with a net worth of $30 million or more) climbed 2.4% to 520,000 over the past 12 months with growth particularly strong in Asia at 12%. Growing inequality is now viewed by many as the greatest single risk to future wealth accumulation with public support growing for wealth taxes. Knight Frank notes that new or proposed plans are in place in Argentina, Canada and South Korea with similar efforts likely to be implemented elsewhere. Considering the growing gulf between the super rich and the rest of the global population, how much money would a person need to make in different countries to join the exclusive and oft-maligned club of the top 1% wealthiest individuals?
This year, Knight Frank used its Wealth Sizing Model to create an interesting comparison to show just how deep people’s pockets need to be to gain access to the top 1%. The sheer affluence of that community varies significantly between countries and the world’s most exclusive enclave can be found in Monaco. The tiny principality has the densest population of UHNWIs on the planet and the entry point to the community of its top 1% is $7.9 million. Switzerland is also well-known as a super rich haven where a cool $5.5 million is required to gain access to its wealthiest circle. The United States, home to the world’s largest UNHWI population, rounds off the top three. There were approximately 180,000 individuals with a fortune of $30 million or more in the U.S. in 2020 and $4.4 million would be needed to gain 1% status.
The threshold is substantially lower in many other countries where the super wealthy community remains relatively sparse. China is expected to see its 1% entry requirements rise significantly in the coming years but in 2020, $850,000 was enough to gain access to its pool of wealthiest earners. India’s 1% threshold is below 1% of Monaco’s where a mere $60,000 would be enough to make someone one of the country’s top earners. That won’t last for long, however, with Knight Frank stating that wealth forecasts indicate that India’s threshold will double within the next five years.
*Click below to enlarge (charted by Statista)
Level of net worth needed to join the wealthiest 1% in selected countries in 2021.
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