World’s Ultra-Wealthy Population Grew 4.2% in 2023 – Knight Frank

Europe lagged behind with just 1.8% more Ultra High Net Worth Individuals (UHNWI) - with net wealth equal to or more than $30 million - added to its population over 2022. However, the continent maintained its top position as home to the world’s wealthiest 1% population. It is important to note that the entry point to qualify for the 1% population in most countries is well below the $30 million mark.

Monaco tops the list of countries with the highest benchmark for its 1% population. A wealthy individual must have a minimum of $12.9 million to join the 1% club in Monaco; Luxembourg follows next with a benchmark of $10.8 million, and then Switzerland at US$8.5 million. In Asia, Singapore has the highest threshold of US$5.2 million, while in Mainland China, a wealthy individual is required to have just $1,074,000 to make it to the 1% club. Overall, smaller countries or hubs have been shown to have a higher wealth threshold for the 1% of the population. Looking at the future, Asia’s wealthy population is expected to grow faster than any other region by 2028. Asia recorded 165,442 UHNWI in 2023 and is expected to rise to 228,849 by 2028, surpassing Europe’s forecast of 189,882 UHNWI at the same time.

Generational Shift of Wealth To Change Investment Trends

In the next two decades, the Baby Boomer generation (born between 1946 and 1964) and the Silent generation (born from 1928 to 1946) will transfer their wealth and assets to the next generation. As wealth changes hands, the ways in which it is invested will also drastically change.

For example, younger generations are unlikely to see residential property as a route to wealth creation as the generations before them did, according to Mike Pickett, Director of Cazenove Capital. Another investment expert in the report notes that 66% of millennials are likely to focus on investing with purpose, compared with 49% for Gen X(1965-1979). Climate change is the number one concern for Gen Z and whether they’re rich or just affluent

The report raises concerns about the proportion of women in the ultra-wealthy population. Women currently make up just 11% of the UHNWI globally, a noteworthy minority figure that hasn’t grown much from the 8% share about a decade ago. An attitudes survey conducted by Knight Frank, however, shows that Gen-Z women anticipate growth in their wealth this year more than millennial women.

In 2023, investments in passion such as wine, whiskey, and watch collecting did not perform well due to financial markets taking precedence over collectibles that were slipping in value. Overall, rare whisky fell in value by 9%, classic cars by 6%, art rose by 11% and watches by 5%. Watches sold at the big three auction houses totaled £488 million in 2023, a very slight increase from the previous year.