Just how much money do you need to be among the global 1 percent?
According to the 2018 Global Wealth Report from Credit Suisse Research Institute, you need a net worth of $871,320 U.S. Credit Suisse defines net worth, or "wealth," as "the value of financial assets plus real assets (principally housing) owned by households, minus their debts."
More than 19 million Americans are in the 1 percent worldwide, Credit Suisse reports, far more than from any other country, while "China is now clearly established in second place in the world wealth hierarchy," with 4.2 million citizens among the world's top 1 percent.
To be among the top 10 percent worldwide, you don't even need six figures: A net worth of $93,170 will do it.
And even if you have just $4,210 to your name, you're still richer than half of the world's residents.
These numbers reflect the extreme level of persistent wealth inequality. As Credit Suisse reports: "While the bottom half of adults collectively owns less than 1 percent of total wealth, the richest decile (top 10 percent of adults) owns 85 percent of global wealth, and the top percentile alone accounts for almost half of all household wealth (47 percent)."
The good news is, "there are signs that wealth inequality is no longer rising," Credit Suisse says.
The share of financial assets among many of the richest people and richest countries "peaked in 2015 and has been declining since then. In previous reports, we predicted that wealth inequality would follow suit — possibly with a slight lag — and there is evidence that this is now the case. The share of the top decile and the top 5 percent remains at the same level as in 2016, while the share of the top 1 percent has edged down from 47.5 percent to 47.2 percent according to our best estimate."
It's too early to conclude that wealth inequality is on a downward trend, Credit Suisse reports, but "the prevailing evidence suggests it may well have leveled out, albeit at a very high level."
Don't miss: Here's how much money the top 1 percent have in savings
Like this story? Subscribe to CNBC Make It on YouTube!
As an expert in global wealth distribution and economic trends, my knowledge is deeply rooted in the dynamics of financial assets, net worth, and wealth inequality. I draw upon a comprehensive understanding of various reports and analyses, including the 2018 Global Wealth Report from the Credit Suisse Research Institute, which serves as a key reference in the realm of global wealth dynamics.
The Credit Suisse Global Wealth Report provides a nuanced perspective on the stratification of wealth across the world. To be considered among the global 1 percent, individuals need a net worth of $871,320 USD, as defined by Credit Suisse, encompassing financial assets and real assets like housing while subtracting debts. The report underscores the staggering wealth inequality present globally, with over 19 million Americans positioned within the top 1 percent—surpassing any other nation. China follows closely in second place with 4.2 million citizens in the global 1 percent.
For those aspiring to be part of the top 10 percent globally, a net worth of $93,170 suffices, emphasizing the relatively lower threshold for this percentile. The report's revelation that an individual with just $4,210 in net worth is wealthier than half of the world's population highlights the profound wealth disparities on a global scale.
Credit Suisse's findings reveal the stark contrast in wealth ownership, stating that the bottom half of adults collectively owns less than 1 percent of total wealth, while the richest decile commands a staggering 85 percent of global wealth. Moreover, the top 1 percent alone accounts for nearly half of all household wealth, at 47 percent, showcasing the concentration of wealth at the pinnacle.
The report also sheds light on a potential shift in wealth dynamics. While acknowledging that wealth inequality has been persistently high, Credit Suisse suggests a plateau or even a slight decline in recent years. The share of financial assets among the wealthiest individuals and countries has been declining since 2015, with the share of the top decile and the top 5 percent remaining stable since 2016. Notably, the share of the top 1 percent has slightly decreased from 47.5 percent to 47.2 percent.
However, it is crucial to exercise caution in interpreting this data, as Credit Suisse notes that it might be premature to conclude that wealth inequality is definitively on a downward trend. The prevailing evidence suggests a potential leveling out, albeit at an exceptionally high level.
In conclusion, the insights from the Credit Suisse Global Wealth Report unveil the intricate details of global wealth distribution, offering a comprehensive view of the criteria for joining the elite 1 percent and the broader context of wealth inequality across the world.
