It takes $10 Million to be Wealthy in 2007, Research Reveals
The term "millionaire" - once almost a gold standard of wealth - has lost its cachet in a world that is experiencing a wealth boom; More than a third of respondents* think you need at least $10 million to be wealthy; The report also shows that wealth is about more than simply money; it is about having a better quality of life and an opportunity to contribute to the society
Tweet-- A new report published today by Barclays Wealth, entitled Insights: The True Value of Wealth, reveals that more than a third (35 per cent) of respondents believe individuals need to have assets of at least $10 million (£5 million) to be considered wealthy.
“This is the perceived level at which people believe they are truly wealthy as it gives them influence within their community and a greater sense of control over their own destiny,” said Satya Bansal, head of Barclays Wealth in India.
“Being wealthy is about much more than what you can buy. Our research shows that wealthy individuals want to pursue personal goals such as philanthropic causes and influence change within their community.”
Having liquid assets of $10 million (excluding one’s home) also gives people a sense of security and makes them feel protected from the hazards of the world, the report shows. Having this buffer means people with assets of at least $10 million act and enjoy their wealth differently from those whose assets fall below this threshold, according to the report. This level of wealth elevates their status so they behave more like people with assets of US$50 million, than people with US$5 million, the report reveals.
A million dollars isn’t what it used to be
The term “millionaire” – once almost a gold standard of wealth – has lost its cachet in a world that is experiencing a wealth boom. In the UK alone, there are more than 400,000 households with financial wealth in excess of US$ 1million and this figure will more than double to 940,000 households by 2016, according to Barclays Wealth’s research**. India has been amongst those at the vanguard of this growth trend after registering the world’s second fastest wealthy population growth rate, propelling the number of high net worth individuals in the country to cross the 100,000 mark, as per the World Wealth Report 2007. “Strengthening rupee, robust economic growth, sound financial markets along with gains in income and credit expansion have been the key drivers of growth in India’s wealthy population,” Mr. Bansal added.
Even though more people are acquiring wealth, there has been an increase in the cost of goods and services that people want such as concierges, butlers and travel services together with commitments such as private school fees and health insurance. This is influencing the level of assets that people think they need to sustain their lifestyles.
Wealth is more than money
The report also shows that wealth is about more than simply money; it is about having a better quality of life. Across the globe, more than half of respondents say that wealth has given them more leisure time. Those in Hong Kong (81 per cent), France and Switzerland (each 79 per cent) are most likely to say that their wealth has allowed them more time for leisure pursuits. Wealth has also had a positive impact on people’s well-being with the majority of respondents saying it has increased their happiness. Europe scores highest, with 87 per cent of people living in Portugal and Italy, and 85 per cent of those in Spain, reporting a greater sense of happiness as a result of their wealth.
“Universally, people tend to think about wealth in terms of assets and monetary value,” says Mr. Bansal. “But being wealthy for people in India not just about the money. In Indian ethos, Wealth has been a symbol of power and a responsibility to do greater good.”
Helping charitable organisations is particularly important to wealthier individuals. Support for charitable causes has long been part and parcel of being wealthy, and the report suggests this is strongest among the most affluent sections of society. When asked what proportion of their estate they planned to leave to charitable causes, a quarter (26 per cent) of respondents with assets under US$1m said that they planned to leave more than 10 per cent of their estate to charitable causes. This rose to more than one-third (37 per cent) for those respondents with wealth in excess of US$3m – each of whom would therefore be leaving a minimum of $300,000 to charity.
The wealth treadmill
Interestingly, the report shows that many high net worth individuals do not feel that they are truly wealthy because they compare themselves with people who have more money than them. This attitude is placing many people on a wealth treadmill, as they try to catch-up to their more prosperous peers. Some 69 per cent of those surveyed with assets of less than US$1m do not believe that they are wealthy. That compares with less than a quarter (22 per cent) of those with assets of more than US$3 million.
The report is a global survey of 790 wealthy individuals[1], produced in partnership with the EIU that examines how wealthy individuals perceive and value wealth. It also considers the revolution in the luxury goods and services market as companies adapt their offerings to meet the demands of the wealthy. The report includes comments from a panel of experts drawn from academia, industry and financial circles who provide unique insights.
Notes to Editor
Notes to editors:
Barclays Wealth Insights: The True Value of Wealth examines how wealthy individuals perceive and value wealth. It also considers the revolution in the luxury goods and services market as companies adapt their offerings to meet the demands of the wealthy.
The report brings together a global survey of 790 wealthy individuals, with comment from international thought leaders and experts, existing research data, and case studies.
Barclays Wealth Insights is a series of research reports developed in partnership with the Economist Intelligence Unit (EIU) which aims to provide a definitive picture of what being wealthy means in the 21st century. These comprehensive, international reports delve into the mindset of today’s wealthy and uncover their motivations for creating and protecting their fortunes: what drives and inspires them, their attitudes toward money management and how they enjoy their wealth.
Log onto www.barclayswealth.com to access the Barclays Wealth Insights series.
* Please note this figure refers to those respondents with assets of at least US$3 million
** According to Barclays Wealth Insights Volume 1
About Barclays Wealth
Barclays Wealth is the UK's leading wealth manager and at 30 June 2007 had £126.8bn client assets globally. It serves affluent, high net worth and intermediary clients worldwide, providing international and private banking, fiduciary services, investment management and brokerage. Barclays Wealth was voted Global Investor’s Wealth Manager of the Year for 2007. Thomas L. Kalaris, Chief Executive of Barclays Wealth, joined the business in 2006.
Barclays Wealth is part of the Barclays Group, a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the USA, Africa and Asia. It is one of the largest financial services companies in the world by market capitalisation. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 127,000 people. Barclays moves, lends, invests and protects money for over 27 million customers and clients worldwide.[1] With investable assets in excess of £100,000 (US$200,000)
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