Feeling like you’re swimming in money or struggling to make ends meet? Prepare to be enlightened as Credit Suisse unveils its annual Global Wealth Report, which delves into the wealth distribution around the world. Although Credit Suisse was recently acquired by UBS, it’s clear that the tradition of assessing the richest individuals and countries will continue. While the report’s specifics are still unknown, previous findings have revealed some fascinating results.
As expected, the United States had the highest number of dollar millionaires by the end of 2021. This comes as no surprise considering the US’s knack for creating massive wealth. Switzerland, known for its ability to attract billionaires from across the globe, claimed the top spot for average wealth per person. The United States followed closely behind in second place.
However, when it comes to measuring the wealth of the average citizen located right at the middle of the wealth spectrum, Australia emerged as the victor. Sitting right in the middle, these “everyman” and “everywoman” from Down Under boasted net assets of nearly $275,000 (£215,000 in US dollars). Belgium, New Zealand, and Hong Kong were the next contenders in line.
The United Kingdom claimed the ninth spot, with the median Brit worth over $141,000. They were slightly behind Canadians and the Dutch but ahead of the French. To everyone’s surprise, countries like Japan, Norway, and Italy fell far short in comparison.
As for the US middle-class citizen, they found themselves in the inconspicuous position of 18th place, with a net wealth exceeding $93,000. Meanwhile, the Germans didn’t even make it into the top 20.
Canada, despite having a lower gross domestic product (GDP) and average wealth than the US, was able to offer a wealthier middle-class experience to its citizens. This phenomenon highlights the importance of personal wealth and how it can affect one’s financial security.
Take Germany, for example. The country boasts a thriving economy, abundant job opportunities, and serves as the largest net contributor to the European Union’s budget. While Germany may be financially robust with relatively low national debt, its citizens realize that they own fewer assets than their counterparts in countries such as Italy and Spain. It’s no wonder that many Britons and others are considering emigrating to countries like Australia, New Zealand, and Canada.
The allure of these countries doesn’t stem solely from the absence of inheritance tax or larger homes. In fact, it’s the potential for increased personal wealth that tempts individuals to relocate.
However, we must consider various factors that can affect one’s wealth. Housing, for instance, plays a significant role. Hong Kong’s high ranking on the list is mainly due to its outrageously expensive real estate market. While residents may appear wealthy on paper due to their property’s value, they often have to sacrifice living space.
On the other hand, Germans might appear “poorer,” but that’s primarily because the majority rent their homes rather than own them.
Another aspect to consider is the discrepancy between the United Kingdom and the United States. American homes, in general, are larger and more affordable compared to their British counterparts. So, from the perspective of living space, the middle-class Briton may find themselves at a disadvantage despite the figures suggesting otherwise.
Public services also contribute to a country’s wealth. European nations like Belgium, Switzerland, and the Netherlands have managed to balance well-funded public services with high individual wealth. The same can be said for Australia, New Zealand, and Canada, which fare favorably against the US in this aspect.
As we eagerly await the release of the report, I am particularly interested in two key areas: inequality and projections. The report’s findings will shed light on whether the top 1% still hold 45% of global wealth or if that proportion is declining. Moreover, I’m curious to see whether the previous prediction of a rapid increase in UK millionaires still holds true, surpassing the growth rates of the US, Germany, and France. If so, it would suggest that certain strategies in the UK are yielding positive results.
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