Over 10,000 ultra-high net worth individuals (UHNWIs) have made their home in the United Kingdom, according to research published this week. The definition to qualify as UHNWI is to have wealth of at least £20m (or $30m), measured not only in terms of money but in business interests, investments and property, though not counting the main residence.
The research, published by the London-based firm, WealthInsight, puts the UK in third place in the international “league table” of wealthy individuals. The USA leads the way with more than 40,000 UHNWIs, then a little way ahead of the UK is Germany, with an estimated 12,100. China (8,500) and Switzerland (5,500) come next, followed by Canada and Brazil, with a little over 4,000 each, and Australia with just under 3,000.
The research suggests that the numbers are on the rise, too. The current UK figure of 10,400 is expected to be almost 12,000 within three years. This is an indication not simply that wealthy people are getting wealthier, but also (as has previously been noted in this blog) that the UK remains an attractive destination for HNWIs. Political and financial security and high educational standards in private schools are often cited as reasons.
One factor which is expected to change over the next few years is the age of the super-wealthy. Currently, nine out of ten of the UK’s UHNWIs are aged 45 or more. But a trend already appears to emerging of fortunes being transferred to the younger generation. There is also a difference between people from the long-established rich nations and those from emerging economies. In the long-established nations, the UHNWIs tend to be older as many of them have inherited their fortunes, often through family businesses. UHNWIs from emerging economies tend to be younger and to have made their fortunes through their own entrepreneurial efforts.
The research from WealthInsight also put the position of UHNWIs into global perspective. Taking into account the estimated number of millionaires around the world (that is, those with at least $1m), UHNWIs represent just one per cent. Yet they hold one third of the total wealth held by millionaires. At the top of the scale, according to Forbes, there are 1,645 billionaires globally.
In other global research published this week, the charity, Oxfam, which is dedicated to fighting world poverty, said that the richest one per cent now own 48% of the world’s wealth, and that this would rise to over 50% next year. This was just one of a number of warnings sounded at the annual World Economic Forum in Davos about potential risks of the widening gap between rich and poor.
And in other UK-based research, published by another charity, the Equality Trust, it was stated that the richest 100 individuals in the UK had as much wealth as 30% of the population.
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