How much wealth do you need to be part of the 1 percent in Switzerland?
A new study by Knight Frank has revealed how much wealth you need to be a member of the 1 percent in Switzerland. As the home of vast banks, insurance firms, international companies and millionaires, the threshold for joining the richest 1 percent club is the second highest in the world.
World's wealthy expand during COVID pandemic
In the latest Knight Frank Wealth Sizing Model, the market analyst found that the 1 percent worldwide has seen their wealth reach “totemic status” during the last few years. While the COVID-19 pandemic, supply chain crisis, inflation and decline in purchasing power may have spelt strife for billions of people, in the words of Machiavelli: “never let a good crisis go to waste.”
As was demonstrated by the Forbes list of the richest people in Switzerland for 2023, global crises have allowed the world’s wealthiest people to grow their riches. Recent estimates by the charity Oxfam suggested that the world's 1 percent made 42 trillion US dollars between 2020 and January 2023 - they now own two-thirds of all world wealth.
2022 a bump in the road for 1 percent
Despite this, Knight Frank found that the number of ultra-wealthy people worldwide (net worth of over 30 million US dollars) actually fell by 3,8 percent in 2022, with the biggest losses recorded in Europe (-8,5 percent) and Asia (-6,5 percent). The organisation blamed these losses on high-interest rates, “benign geopolitics” and poorly performing financial markets.
However, the company concluded that this dip will be just a bump in the road, especially considering that the number of ultra-wealthy worldwide has still grown by 44 percent between 2017 and the end of 2022. “While we forecast that this will slow to 28,5 percent over the next five years, the recent dip will prove short-lived as we adapt to a new economic environment,” they concluded.
How much wealth do you need to be in the 1 percent in Switzerland?
To be considered a member of the richest 1 percent in Switzerland, as of the end of 2022 you need to have a total wealth of 6,6 million US dollars - or 5,9 million Swiss francs. This is the second highest threshold in the world, only behind the rich microstate of Monaco where you have to have total assets worth 12,4 million dollars.
According to the data, despite declining between 2021 and 2022, the population of people in Switzerland with a net worth of over a million dollars has increased by 32,5 percent between 2017 and 2022, totalling 1.520.687 people at the end of last year - 17 percent of the population. The number of people in Switzerland with assets over 30 million dollars has risen by 33,9 percent in the last five years, totalling 18.912 people by the end of 2022.
10 highest 1 percent thresholds in the world in 2022
In all, here are the 10 countries with the highest threshold for becoming a member of the 1 percent at the end of 2022 (in millions of US dollars).
- Monaco (12,4)
- Switzerland (6,6)
- Australia (5,5)
- New Zealand (5,2)
- United States of America (5,1)
- Ireland (4,3)
- Singapore (3,5)
- France (3,5)
- Hong Kong (3,4)
- United Kingdom (3,3)
For more information, and to see how the study was carried out, check out the official website.
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