A new report has revealed just how large your personal wealth needs to be to be considered among the wealthiest people in the world.
The Knight Frank Wealth Report estimates that a person needs to be worth around £1.4million in order to rank among the UK’s richest one per cent.
However, this figure means the minimum fortune needed to make up the richest one per cent in the UK is only the eleventh largest in the world.
A new report has revealed just how large your personal wealth needs to be to be considered among the wealthiest people in the world. The Knight Frank Wealth Report estimates that a person needs to be worth around £1.4million in order to rank among the UK’s richest one per cent
Of the top 20 territories examined in the study, nations such the US, Switzerland and the principality of Monaco all rank above the UK.
The average wealth of Monaco’s wealthiest one per cent is around £5.6million – four times as large as the UK’s £1.4million mark.
Residents of Monaco pay no income taxes, which helps keeps them at the top of the world’s rich list.
Liam Bailey, Knight Frank’s global head of research said: ‘You can clearly see the influence of tax policy at the top. Then you have the sheer breadth and depth of the U.S. market.’
The average wealth of Monaco’s wealthiest one per cent is around £5.6million – four times as large as the UK’s £1.4million mark. Pictured: The Fontvielle district in Monaco
Knight Frank’s findings help to illustrate how the wealth divide has been widened as a result of the coronavirus pandemic.
The entry point for Monaco’s richest one per cent is almost 400 times greater than in Kenya, which is the lowest ranked nation looked at in the study.
The World Bank estimates that around 2million people in Kenya alone have fallen into poverty as a result of the pandemic.
Meanwhile the world’s 500 wealthiest people have added £1.28trillion to their fortunes, according to the Bloomberg Billionaires Index.
Of the top 20 territories examined in the study, nations such the US, Switzerland (pictured) and the principality of Monaco all rank above the UK
Knight Frank believes the Asia-Pacific region is set to outpace global growth in ultra-high-net worth individuals between 2020 and 2025, with India and Indonesia set to see the greatest growth.
Singapore, in which the family office of Google co-founder Sergey Brin is setting up a branch and British billionaire James Dyson has already relocated his family investment firm, is also expected to see a surge.
Commenting on Asia-Pacific’s growth, Victoria Garrett, Knight Frank’s head of residential for the region, said: ‘Asia-Pacific’s foothold as host to the world’s leading wealth hubs continues to strengthen.’
It comes as the report from Frank Knight also showed London has overtaken New York as home to the most ‘dollar millionaires’ with 875,000 of them now living in the city.
A jogger passes One Hyde Park, a luxury residential and retail complex, in Knightsbridge. A new report shows that 874,354 people in London have assets, including property, worth more than £720,000
The report shows that 874,354 people in London have assets, including property, worth more than £720,000 which makes them so-called ‘high net worth individuals’.
This compares to 820,000 HNWIs in New York and means that one in ten people living in London are now ‘dollar millionaires’.
Knight Frank said the rise is being driven by property prices in the capital, with the average house costing £514,000, meaning many fall into the high net worth category.
Brothers Srichand Parmanand and Gopichand Hinduja are thought to be the richest people in London.
Carlton House Terrace, the home of London’s richest, brothers Srichand Parmanand and Gopichand Hinduja
They are worth an estimated £16 billion – slightly more than music mogul Sir Leonard Blavatnik, who is worth £15.8 billion.
Knight Frank’s Wealth Report revealed how the high cost of housing helped to make 875,000 Londoners high net worth individuals.
Liam Bailey, Knight Frank’s head of research, said: ‘The main point is that our HNWI threshold is $1m, so £720,000, and with average house prices in London at £514,000, a lot of households fall into the HNWI category.
‘Ironically the high cost of housing in London is the main driver for categorising so many households as being wealthy.’