Knight Frank has released his 2021 Wealth Report who found that the global Covid-19 pandemic has proved good news for the super-rich due to rising 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 in the last 12 months, with strong growth in Asia of 12%. Growing inequality is now considered by many to be the greatest individual risk of 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. Given the growing gap between the super-rich and the rest of the global population, how much money would a person need to earn in different countries to join the exclusive and often injured club for the 1% richest individuals?
This year, Knight Frank used his Wealth Sizing Model to create an interesting comparison to show how deep people’s pockets must be to access the best 1%. The great prosperity of the community varies greatly between countries and the world’s most exclusive enclave is in Monaco. The small principality has the most densely populated population of UHNWIs on the planet and the entrance to the community of its highest 1% is $ 7.9 million. Switzerland is also known as a super-rich getaway where it takes $ 5.5 million to access its richest circle. The United States, home to the world’s largest UNHWI population, rounds out the top three. There were approximately 180,000 individuals with a fortune of $ 30 million or more in the United States by 2020 and $ 4.4 million would be needed to obtain 1% status.
The threshold is significantly lower in many other countries where the super-rich group is still relatively sparse. China is expected to meet its 1% entry requirement significantly in the next few years, but by 2020, $ 850,000 was enough to access its pool of wealthiest earners. India’s 1% threshold is below 1% of Monaco’s where only $ 60,000 would be enough to make someone the country’s best earner. However, it will not last long, but Knight Frank says that wealth forecasts indicate that India’s threshold will double within the next five years.
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