Inside the world of the super-rich - the niche 0.00793% UHNWIs globally (2024)

Looking back at the year 2023 - Did we unlock the Pandora box? 

Well, pivotal events, ranging from the collapse of the SVB bank, and the geopolitical unrest globally, to the Fed interest rate hikes, did send some major shock waves across the global financial system. 

So maybe, yes, it does appear to look like we did unlock the Pandora box. 

Does it mean that wealth creation took a backseat for everyone? 

Well.. guess what?

The billionaire club has never been more crowded—and you can say wealthier, with their collective net worth reaching an astonishing $14.2 trillion, a US $2 trillion increase from 2023.

Moreover, in 2023, the number of billionaires reached 2,781, an increase of 141 from 2022 and surpassing the previous registered number set in 2021 by 26! 

The 0.00793% - The ‘Ultra High Networth Individuals’ (UHNWIs)

The elite 0.00793% of the global population, popularly known and classified as the ‘Ultra High Networth Individuals’ (UHNWIs), is gaining attention … for the right reasons! 

The total number of the UHNWIs surged 4.2% in 2023 to 626,619 from 601,300 in 2022.         

This noteworthy increase prompts the question:

What factors are driving the rise in this mass-affluent segment?

But hey,

Can any wealthy person become a UHNWI? 

The answer is - No.

There is a threshold for being among the wealthiest <0.01%, which is ‘generally’ defined as an individual having a networth of atleast US $30 million or more. The threshold number, however, may vary from country to country or region to region. 

Example: In Monaco, the threshold to join this 1% club is US$12.9 million, whereas in Luxembourg it is set at US$10.8 million, and in Switzerland at US$8.5 million.

Interesting Fact: The year 2023 witnessed the creation of 70 new UHNWIS daily. And this trend may not slow down anytime soon!         

Finding the UHNWIs globally: Where is this niche segment present?  

Regionally, North America and the Middle East took the lead in wealth creation, with growth rates of 7.2% and 6.2% respectively, while Latin America experienced a decrease in its wealthy population. In terms of individual country performance, Turkey claimed the top spot with a remarkable 10% increase in UHNWI numbers, closely followed by the US with an 8% expansion.

Mirror Mirror on the wall, who would be the richest of all? 

It’s the Millennials. 

Millennial Affluents are all set to become the richest generation in history, with $90 trillion worth of assets moving from boomers to millennials.

A cherry on top? With changing attitudes in wealth creation, the trend shows a continued rise in female UHNWIs. Over the past decade, there's been a 38% increase in female UHNWIs, and this growth is set to continue.

So, what does the future look like for the ultra-rich?

One can say full of riches for sure (pun intended), 

but on a serious note, rather promising: Gen Z is brimming with confidence in their wealth-creating abilities. According to Knight Frank’s Attitudes Survey, 71% of UHNWIs globally expect their wealth to grow this year.

• The global population of wealthy individuals is expected to rise by 28.1% over the next five years, up to 2028. Although this growth is positive, it is slower compared to the 44% increase experienced in the previous five-year period ending in 2023.
• The report highlights significant UHNW population growth over the next five years, with India at 50%, mainland China at 47%, Malaysia at 35%, and Indonesia at 34%.
• Over this period to 2028, Asia's wealthy population is expected to grow faster than any other region, positioning it to surpass the US as the world's leading ultra-wealthy hub.

(Maybe..Perhaps you recognize some of these rising UHNWIs—or maybe.. maybe.. you’re one of them yourself. If you are aspiring to join this club by managing your investments well, don’t hesitate in reaching out to us. With our advisors and investment experts, get best-in-class service and unbiased portfolio advice. Leave the worry of growing your wealth to us, and enjoy your life to the fullest!) 

To know more, you can reach out to us @ support@kristal.ai or WhatsApp us. 

We will see you soon!

Source:

• Elliman Insider; Kight Frank Report; Relevance; Euronews; Investopedia; Forbes; Vantage Markets