Australia’s population of millionaires is expected to increase by 21% over the next four years, according to new data from global financial services firm UBS.
Its Global Wealth Report analysed data from more than 50 nations, finding overall wealth has “risen steadily” since 2008.
The report, which analysed assets including property ownership, showed how rich Australians are: the world’s second wealthiest people ‘on paper.’
Wealth report
The Global Wealth Report analysed household wealth (in U.S. dollars) across 56 nations.
It defined “wealth” (or net worth) as the “value of financial assets” plus “real assets” (e.g. housing) owned by households, “minus their debts.”
The report includes median wealth data from each market — the middle figure between the highest and lowest individual net-worth in each market.
How rich are Australians?
Australia is on track to have 21% more millionaires by 2028.
This is higher than projected growth figures for the U.S. and China.
Australia’s median wealth was the second highest in the world at $US261,805 ($AU387,176).
It ranked behind the small European nation Luxembourg, and ahead of Belgium and Hong Kong.
Millionaires
UBS found 22 million people in the U.S. represent the highest percentage of global millionaires (38%).
China, Japan, Germany and France rounded out the top five countries with the most millionaires.
The report estimated close to two million Australians are millionaires — a figure slightly behind Canada, but ahead of South Korea, Italy and the Netherlands.
Billionaires
UBS also analysed global data about individuals worth more than $US1 billion.
It identified over 2,600 individual billionaires.
At the top of the report’s Global Wealth Pyramid were a total of 14 people worth more than 100 billion dollars. This group made up 0.5% of all billionaires.
Projections
By 2028, UBS projected “the number of adults with wealth of over USD one million will have risen in 52 of the 56 markets in our sample.”
However, it predicted there will be fewer millionaires in the UK and Netherlands.
The Global Wealth Report also forecasts a near 50% increase in the number of millionaires in Taiwan. It attributed this to a projected boom in its microchip industry.
Trends
The report found that, globally, people of all levels of wealth were getting gradually richer.
The fastest wealth growth over the last 15 years was in the Asia-Pacific region. However, this region also reported the biggest spike in debt since 2008, up 192%.
However, UBS noted persistent wealth inequality in parts of the world including Brazil, Russia and South Africa. This refers to the gap between a region’s richest and poorest individuals.
