Global Surge in Millionaires Expected except in the UK
- Australia is predicted to have 400,000 more millionaires by 2028, according to UBS' Global Wealth Report.
- An additional 400,000 Australians are expected to join the millionaire club by 2028.
- However, the UK is forecasted to experience a decline in the number of millionaires.
In a recent report by a Swiss bank, it has been predicted that Australia's millionaire population is expected to increase by 400,000 within the next five years, reaching a total of 2,334,015 millionaires by 2028. This surge would bring the number of millionaires in Australia to one in every 10 adults, surpassing countries like the U.S., New Zealand, the Netherlands, and Singapore, but still trailing behind Luxembourg and Switzerland. The survey, measured in US dollars, defines an Australian millionaire as someone with assets totaling $A1.478 million, including their family home, minus any debts. Australia ranks second in median wealth, following Luxembourg, with the average Australian worth $US261,805 or $A386,858. While 10% of Australian adults are millionaires, countries like Luxembourg and Switzerland have higher percentages at 16% and 15%, respectively. The report also highlights other countries like Canada, Turkey, Kazakhstan, and Indonesia, which are expected to see significant increases in their millionaire populations by 2028. Despite a modest 7.8% growth in the Australian share market in the past financial year, UBS anticipates a recovery in global markets to drive wealth creation in the upcoming years. The report emphasizes the importance of owning a home in determining one's wealth, defining net worth as the value of financial assets plus real assets, primarily housing, minus debts. Additionally, Australia's average wealth-per-adult has seen a substantial increase, outpacing the growth rate of other countries in UBS' sample. Looking ahead, UBS projects continued growth in wealth-per-adult across all markets, with emerging markets expected to account for a larger share of global wealth. The report also underscores the significance of long-term wealth planning, especially as the baby boomer generation prepares to transfer an estimated $4.9 trillion in wealth to the next generation. This transfer is expected to be managed predominantly by eldest daughters, who are also more likely to oversee the family's estate.