How many people have a networth of 1 million? Worldwide, the best-known estimates, such as UBS’s annual Global Wealth Report, count roughly 60 million millionaires in US dollar terms, and the United States accounts for a large share of them, in the tens of millions. Exact totals shift each year with markets, exchange rates and methodology.
First, what does “net worth of $1 million” mean?
Net worth is everything you own minus everything you owe. Home equity, retirement accounts, brokerage holdings, savings, a business stake, and valuables count as assets. Mortgages, student loans, credit card balances and other debts come off.
That definition is why a paper millionaire often doesn’t feel rich. A person with a paid-down house and a healthy 401(k) can cross the line without ever having a million in cash. For more on the concept, see the Wikipedia entry on net worth.
The big picture numbers
Several organizations try to count. UBS and Credit Suisse (whose research later folded into UBS) publish global wealth reports. Others, like Knight Frank, Capgemini and Henley & Partners, publish their own tallies, using different definitions. Some include the primary home, some exclude it. Some count investable assets only.
Because of this, you’ll see headlines ranging widely. A figure that excludes primary residences is much lower than one that includes them. When someone quotes a number, ask what’s inside it.
How many in the United States?
The US has more millionaires than any other country by a wide margin. Reports in recent years have put the count at more than 20 million people, which is a large share of the global total. Those who track it note that the number has risen over time, partly because home prices and stock markets climbed and partly because of inflation lowering what a million dollars buys.
The Federal Reserve’s Survey of Consumer Finances, available at the Federal Reserve website, is another source. It reports on household wealth distributions, and it looks at households, not individuals, which is why its figures don’t match the private reports.
Why the totals don’t match across sources
- Individuals vs households. A couple sharing a house counts as one household but can be two adults.
- Currency. Global reports use US dollars, so exchange rates move the counts.
- Asset coverage. Private companies, art and collectibles are hard to value.
- Timing. Stock market swings can push thousands over or under the line in a year.
Is a million still a lot?
It depends where you live and how old you are. In a high-cost city, a million may be mostly a house. For a retiree, a common rule of thumb is that a portfolio might support withdrawals of around 4% a year, which would be about $40,000, though that rule is debated and not a guarantee. So a million is meaningful, but it isn’t a lifetime of luxury.
Inflation also quietly changes the meaning. A million dollars decades ago is not the same purchasing power today.
Working out where you stand
Make a simple list. Add up your assets at current values, then total your debts and subtract. Do it once or twice a year rather than weekly, since markets bounce around. If you’re comparing yourself to the statistics, remember that most people who are millionaires got there through steady saving, home ownership and time rather than a windfall.
So, the answer to how many people have a networth of 1 million is: tens of millions of people globally, with the exact figure depending on who counts and what’s included.
What the distribution looks like
Wealth is lopsided. Most of the world’s adults have a net worth well under a million, and the millionaire group is a small slice. Within that slice, most people are at the lower end, between one and five million, and only a tiny fraction are far above it. Headlines about the ultra-wealthy can make a million sound ordinary, but globally it puts a person firmly in the top few percent.
The pattern also varies by country. Places with high home values and large retirement savings, such as the US, Switzerland and Australia, tend to have higher average wealth than countries where much household savings is held informally.
If you’re trying to decide whether the statistic means something for you, a better question than “how many have it” might be “what would I need to reach my own goals?” That’s a number only you can set.
This article is for general information only and is not financial advice.
Related reading
- What Is the Net Worth of Mr Eazi? Income Sources and Estimates
- What Is Nick Cannon’s Net Worth? A Look at How He Earns
Photo: Sgt. Michael Selvage, Public domain, via Wikimedia Commons
