2 minute read
Wealth summit
WEALTH SUMMIT WORDS – FLORA HARLEY DATA MODELLING – JAMES CULLEY Using the Knight Frank Wealth Sizing Model, we reveal how deep your pockets need to be to join the wealthiest 1% in selected countries and territories
The top 1% – frequently cited, sometimes maligned, but never really defined. The level of net wealth that marks the threshold for entering this rarefied community varies widely among different countries and territories.
Interestingly, though, it falls far short of our definition of a UHNWI – somebody whose net wealth exceeds US$30 million – even in Monaco, which has the world’s densest population of super rich. The entry point for the principality’s branch of the 1% club – the world’s most exclusive – is US$7.9 million.
In second place comes the home of the private bank, Switzerland, where US$5.1 million gains you access, followed by the US, which has the highest number of UHNWI residents. Here, US$4.4 million is your ticket to 1% status.
Singapore, in fourth place, is Asia’s highest entry, marginally ahead of Hong Kong, with the level of wealth required being US$2.9 million and US$2.8 million respectively. New Zealand sets a US$2.8 million barrier – US$80,000 more than you would need in neighbouring Australia.
Argentina is the highest entry for Latin America at US$360,000, ahead of Africa’s highest – South Africa at US$180,000.
Developing economies Indonesia and Kenya have thresholds that are below 1% of the level of Monaco at US$60,000 and US$20,000 respectively. India has the same 1% level – US$60,000 – but with a UHNWI population 10 times that of Indonesia and 14 times that of the Philippines. Wealth growth forecasts predict India’s threshold to almost double over the next five years.
The Chinese Mainland is also forecast to see its 1% threshold rise by almost 70% from US$850,000 in 2020. This reflects rising wealth but, as elsewhere, growth is not uniform. Wealth inequality has become starker within countries and globally, particularly as a result of the Covid-19 pandemic, and this is likely to become a point of growing contention – something we discuss in more detail on the following page.
US$7.9m
needed to join Monaco’s 1%
US$2.9m
Singapore’s 1% threshold – Asia’s highest
Flying high
The level of net wealth needed to join the top 1% in selected countries and territories (US$)
Monaco Switzerland US Singapore New Zealand Hong Kong SAR Australia Ireland France Germany UK Taiwan Japan Spain Italy UAE South Korea Chinese Mainland Malaysia Russia Argentina Romania Brazil South Africa Vietnam Nigeria India Philippines Indonesia Kenya 2.1m 2m 1.8m 1.5m 1.5m 1.4m 1.4m 1.3m 1.2m 850,000 540,000 400,000 360,000 300,000 280,000 180,000 160,000 70,000 60,000 60,000 60,000 20,000
2.9m 2.8m 2.8m 2.8m 2.6m US$4m
4.4m 5.1m 7.9m
Africa Asia Australasia Europe Latin America Middle East North America Russia & CIS
Source: Knight Frank Wealth Sizing Model
