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- Americans need a minimum net worth of $5.8 million to be in the top 1% of US wealth.
- Monaco has the highest net worth cutoff for the top 1% at nearly $12.9 million.
- The number of ultra-high net worth individuals globally is expected to surge by 28% by 2028.
Americans need at least $5.8 million in net worth to be in the top 1% of wealth in their country — less than half of the 1% cutoff for Monaco.
The new 2024 Wealth Report by property broker Knight Frank found that the cut-off for the top 1% of wealth in Monaco is nearly $12.9 million, followed by Luxembourg at $10.8 million and Switzerland at $8.5 million. The US was fourth on the list.
Knight Frank reported that the US cutoff increased nearly 15% from $5.1 million compared to a year ago. The nation's robust economy, which powered strong wealth growth, pushed the cutoff higher, the report said. Wealth as measured by Knight Frank includes investments, cash, and assets such as residences.
The report noted that it's much easier to break into the top 1% than become an ultra-high net worth individual, or UHNWI, which Knight Frank defines as having a net worth of at least $30 million. There are currently 627,000 people worldwide with UHNWI status, with 4.2% more added in 2023 — and 7.2% in North America. Knight Frank projected a 28% surge in the next five years in the total number of wealthy people globally, driven by India and mainland China.
"The improving interest rate outlook, the robust performance of the US economy, and a sharp uptick in equity markets helped wealth creation globally," Liam Bailey, the global head of research at Knight Frank, said in a press release.
Americans are on the whole getting wealthier. The Federal Reserve's Survey of Consumer Finances found that between 2019 and 2022, median net worth surged to $192,000 when accounting for inflation, growing 37%. This has been fueled by higher home and stock prices, as well as pandemic-era government stimulus.
However, Americans in the 80th to 90th income percentiles saw median net worth increase by 69% during the time period, while those in the bottom 20th percentile saw a 24% increase. In 2022, the median net worth for the top 10th percentile was $2.56 million, whereas net worth was just $14,000 for those in the bottom 20th percentile.
The Knight Frank report noted that millennials are expected to become the richest generation ever, with a $90 trillion asset transfer between the silent generation and boomers to younger generations coming over the next two decades.
Inequality is also continuing to rise between rich and poor countries, World Bank data shows. Countries such as Monaco continue to attract wealthy people due to its tax laws, the report notes.
"Our findings confirm the substantial differences in wealth distribution between countries, with smaller hubs demonstrating a bias towards higher thresholds," Bailey said.