The Report finds the richest 1% now worth a total of £106 trillion and owning more than half of all the world’s household wealth, having profited from the aftermath of the 2008 global financial crisis, with their proportion of the world’s wealth increasing from 42.5 per cent in the midst of the crisis to 50.1 per cent now. The wealthiest 10% of people, meanwhile, own 87.8 % of global wealth. Assuming no change in global wealth inequality, the global economy is projected by 1922 to add another 719 billionaires, increasing the number to nearly 3,000. The number of millionaires will advance to 44 million. Globally, the number of HNWIs is set to rise to 193,000.
The Report finds “Looking at the bottom of the wealth distribution, 3.5 billion people—corresponding to 70% of all adults in the world—own less than $10,000. Those with low wealth tend to be disproportionately found among the younger age groups, who have had little chance to accumulate assets, but we find that millennials face particularly challenging circumstances compared to other generations.” Inequality is forecast to increase in the coming years, with millennials facing a tough future as they deal with student debts, higher unemployment and the probability they will have to bear the cost of the baby boomer pensions. It expects only a minority of high achievers will effectively overcome the “millennial disadvantage.”
More than two-fifths of the world’s millionaires live in the US, followed by Japan with 7% and the UK with 6%. But the collapse in the value of the pound since the Brexit vote has seen the total number of dollar millionaires in the UK fall by 34,000 to 2.19 m Just over half of the UK’s 51 million adults have wealth in excess of $100,000. The mean average wealth of a UK adult is $278,038, but the median is $102,641. The Report sees the outlook as dogged both for the economy and for household wealth. It predicts the UK will be the only one of the 23 big economies to suffer a fall in the number of dollar millionaires from 21.9m to 21.3m by 2022. The number has already dropped by 34,000 this year as a result of the fall in the value of the pound.
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