The next decade in global wealth among millionaire households · The next decade in global wealth among millionaire households ... To help address the challenges facing today

The next decade in global wealth among millionaire households

Highlights from a study conducted by the Deloitte Center for Financial Services

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May 2011

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Copyright © 2011 Deloitte Development LLC. All rights reserved.1 The next decade in global wealth among millionaire households

ForewordBackgroundMain findingsDetailed forecastsGlobal asset allocation preferencesUnited States overviewUnited States regionsAppendix

Contents

Produced by the Deloitte Center for Financial Services — Insights. Research. Connections.Headquartered in New York City, the Deloitte Center for Financial Services (“The Center”) developed the survey and provides insight and research to help improve the business performance of banks, private equity, hedge funds, mutual funds, insurance and real estate organizations operating globally. The Center helps financial institutions understand and address emerging opportunities in risk and information technology, regulatory compliance, growth, and cost management.

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Global wealth management has entered a new chapter in its evolution. As wealth managers recalibrate their strategies in the post-crisis environment, it is critical that they have a strong understanding of which economies present the greatest opportunities for business growth. There are, obviously, many factors at play that no wealth manager can ignore, including secular trends such as the rise of emerging markets, changing demographics, and evolving preferences for various asset classes.

To help address the challenges facing today’s wealth managers, the Deloitte Center for Financial Services sought to go beyond some existing wealth management statistics by looking both into the future and across the globe to forecast how wealth among millionaire households might grow. We chose to look a decade forward in the belief that such a view is meaningful for strategic planning,operations, market segmentation, and other decisions.

The study’s main finding is, at heart, a paradox: In spite of exceptional growth in emerging markets, it is developed markets that are expected to remain the global centers of wealth over the next decade, in terms of both the amount of wealth held and the number of millionaire households. Furthermore, the data suggest that emerging markets are not uniformly similar—in terms of size and growth potential as well as asset allocation preferences, these markets offer a variety of prospects.

Asset and wealth managers looking at the study can draw their own conclusions about how best to direct their resources to take advantage of opportunities provided by the economies included in our study. However, we believe this research offers an unprecedentedly rich picture of the evolution of global wealth in the next decade.

Kind regards,

Foreword

Andrew L. FreemanExecutive DirectorDeloitte Center for Financial Services

Val SrinivasHead of Research, Deloitte Center for Financial Services


This study was sponsored by the Deloitte Center for Financial Services and conducted with Oxford Economics. It examines the next decade in global wealth in 25 economies selected for their size, growth potential and strategic importance. We present estimates of the current number of households above specific wealth thresholds, and also forecasts of their growth rate over the next ten years. In addition, a more in-depth analysis provides regional and state wealth forecasts for the United States, with specific focus on the number of millionaire households.

Since socio-economic developments are often key determinants of medium and long-term growth in wealth, understanding how these trends affect movements in various wealth cohorts can be of strategic importance when developing wealth management business strategies. Additionally, as significant opportunities for wealth managers appear to be related to the acceleration of wealth creation in emerging market economies, the global perspective provided by this study is central to any wealth management discussion.

This study’s definition of wealth includes many financial assets (stocks, bonds and other investments) and non-financial assets including primary residence, durables, business equity and other assets.

Background

These 25 economies were chosen for their size and growth potential to wealth management businesses globally *

Australia Japan Spain

Brazil Malaysia Sweden

Canada Mexico Switzerland

China Netherlands Taiwan

France Norway Turkey

Germany Poland United Kingdom

Hong Kong Russia United States

India Singapore

Italy South Korea

*Specific data on the 25 economies are included in the Appendix


• This study reports estimates of the number (and density) of households with net wealth in the $1m–$5m, $5m–$30m, and $30m+ cohorts.

• Official exchange rates are used because this metric is more directly relevant to wealth managers seeking to compare market size and investment opportunities across economies.

• “Wealth” in this study includes the primary residence. Although it is customary for the wealthy to be grouped into categories according to levels of investable assets (i.e., excluding primary residence), on a cross-country basis the available data rarely makes such distinctions possible.

• In order to maximize the reliability of our estimates, the analysis presented herein relies solely on actual, secondary data sources, and not subjective judgments.

• Having estimated the current population of wealthy individuals by economy, our approach to forecasting future changes in their numbers involves two steps. – First, a breakdown of wealth holdings across broad asset categories is established for each cohort of interest. – Second, the value of these portfolios is projected forward using forecasts for relevant factors such as stock prices,

house prices, and interest rates, which are contained within the Oxford Economics Global Model (see Appendix). This modeling approach allows for shifts in the overall distribution of wealth across time, rather than imposing aggregate wealth projections onto a static distribution.

Please note: For the purposes of this presentation, many numbers have been rounded.

Notes on study methodology

Source: Oxford Economics and Deloitte analysis

Main findings


• According to our analysis, the total wealth of millionaire households in the 25 economies included in this study is forecast to grow from $92 trillion in 2011 to $202 trillion in 2020.

• Our study suggests that the rebalancing of global wealth is expected to accelerate over the next decade. Emerging market (EM) economies are likely to prove to be more dynamic in terms of growth rates, creating significant opportunities for wealth managers seeking to gain a share of these potentially lucrative markets. Among emerging markets, China may continue to be the driving force in the growth of millionaire wealth, followed by Brazil and Russia. Of the 25 economies examined in this study, China and South Korea are likely to join the top10 in terms of the total number of millionaires by 2020.

• However, there is a paradox at the heart of this story. According to our study, in spite of the rapid growth of wealth in the EM economies, U.S. and Europe will remain the global centers of wealth over the next decade, in terms of both the amount of wealth held and the number of millionaire households. Our analysis indicates that aggregate wealth of millionaire households in the U.S. in 2020 will likely reach $87 trillion, from $39 trillion in 2011.

• Our forecasts suggest that, in 2020, 43% of the world’s wealth among millionaire households will be in the U.S. Opportunities for growth potentially exist via greater U.S. state penetration. In the U.S., California will likely have the most number of wealthy households, while New Jersey may continue to have the greatest density. The East Coast is likely to see the highest growth rates — New York and Florida together may add 1.5 million new millionaire households by 2020.

Main findings of this study


Our forecasts suggest that total wealth among millionaire households will increase from $92 trillion in 2011 to $202 trillion by 2020, a growth of 119%. In emerging markets, the growth over the next decade is potentially quite impressive (260%), significantly outpacing the growth (107%) in developed markets.

Growth of total wealth among millionaire households in 25 economies (2000–2020)

$1.7 $7 $13 $25$43

$85

$120

$177

0

50

100

150

200

250

2000 2011 2015 2020

Tota

l wea

lth in

USD

trill

ions

Emerging markets Developed markets

Total$45

Total $92

Total$133

Total$202

DM growth 98%

DM growth 41%

DM growth 48%

EM growth311%

EM growth 94%EM growth 86%

Source: Deloitte analysis and Oxford Economics

Developed markets: Australia, Canada, France, Germany, Hong Kong, Italy, Japan, Netherlands, Norway, Singapore, Spain, Sweden, Switzerland, United States, and United Kingdom

Emerging markets: Brazil, China, India, Malaysia, Mexico, Poland, Russia, South Korea, Taiwan, and Turkey


Our analysis suggests that although growth in the total wealth of millionaire households in EM will outpace DM, the latter will likely remain home to the significant share of millionaire households over the next decade. In DM, the $5-$30 million cohort will likely grow substantially over the next decade. And not surprisingly, as per our study, the $1-$5 million cohort will comprise the largest group in both DM and EM.

0

10,000

20,000

30,000

40,000

50,000

60,000

2000 2011 2015 2020

Tota

l num

ber o

f mill

iona

ire h

ouse

hold

s (‘0

00)

Developed Markets

Growth in total number of millionaire households in 25 economies (2000–2020)


0

10,000

20,000

30,000

40,000

50,000

60,000

2000 2011 2015 2020

Tota

l num

ber o

f mill

iona

ire h

ouse

hold

s (‘0

00)

Emerging Markets

33,894

19,189

43,033

55,535

1,1744,084

6,480 9,986

Detailed forecasts


• Overview– Of the 25 economies analyzed, the top 10 wealth management markets are mostly comprised of developed markets. China is

likely an exception, with an estimated wealth of $8.2 trillion in 2020. – Our analysis suggests that Australia will make an entry into the top 10 in 2020 with 1.6 million millionaire households.– According to this study, the U.S will roughly maintain its share in the wealth market over the next decade (42% in 2011 to 43% in

2020). Japan will likely see its share drop from 11% in 2011 to 9% in 2020.• Global leaders

– As per our analysis, the U.S. is likely to continue to dominate with the total wealth of millionaire households projected to rise from $39 trillion in 2011 to $87 trillion in 2020.

– The U.S. is likely to continue to be home to the largest number of millionaires, potentially rising from 10.5 million households in 2011 to 20.5 million households in 2020. Its nearest competitor may be Japan with an estimated 8.6 million millionaire households in 2020.

• Density*– Hong Kong is likely to have the highest density of millionaires in 2020 with 47% of the population holding more than $1 million in

wealth, potentially followed by Singapore with 37% and Switzerland with 24%.– At 1.82%, Singapore may have the highest percentage of households with over $30 million in wealth to total number of

households, potentially followed by Switzerland with 0.6%. Our analysis indicates that Spain may have the lowest proportion of millionaires with more than $30 million in wealth among our 25 economies.

• Per capita wealth– While Switzerland is likely to have the highest per capita wealth overall in 2011 with $4.2 million, Singapore may rank number

one in 2015 and 2020 with $4.5 million and $5.4 million in per capital wealth.– The U.S. will likely have the fifth highest per capita wealth in 2020 at $4.23 million.

Developed markets: Key forecasts

* In this study, ‘density’ refers to the proportion of millionaire households in a given total population.


• Overview– Among the 25 economies analyzed, China is likely to be among the top 10 wealthiest economies by 2015 with an estimated $3.6

trillion in wealth. – Among the BRIC economies, India is likely to experience the largest growth in total millionaire wealth (405%) over the next

decade. This study suggests that China’s wealth among millionaires will grow by 394%, followed by Brazil at 257%, and Russia at 241%.

• Wealth by cohort– In the $1–$5 million cohort, South Korea may have the highest number of millionaires among emerging economies with 1.51

million households in 2020. China will likely follow closely with 1.48 million households.– In the $5–$30 million cohort, China will potentially see 689,000 households by 2020, the third highest of the 25 economies

included in this study. Russia may arrive in eleventh place with 153,000 millionaire households.– According to our study, in the $30m and above cohort, China, Brazil, and India will take second, fifth, and sixth place respectively

with 327,000; 67,000; and 56,000 millionaire households.

• Density– Unsurprisingly, emerging markets will likely appear at the lower end of the density of millionaire households ranking. India may

have the lowest density ranking in 2020 with 0.3% of households holding more than $1 million in wealth, potentially followed by China and Poland.

• Per capita wealth– Among emerging markets in 2020, India is likely to have the highest per capita wealth among millionaires with $4.25 million —

placing it ahead of the U.S. This study suggests that Russia will have a per capita wealth among millionaires of $2.2 million in 2020, while Brazil will likely see $2 million. South Korea will likely appear in last place with a per capita income of $1.4 million in 2020.

Emerging markets: Key forecasts


According to our study, the total wealth among millionaire households of the 25 economies in this study generally exhibit little change in their ranking over the next decade. Emerging market economies will likely see some upward movement in rank (e.g., China).

Global ranking by total wealth among millionaire households (2011–2020)

Total wealth in USD trillions

2011 Total $92.26 2020 Total $ 201.95

1 United States $38.60 1 United States $87.11

2 Japan $10.00 2 Japan $19.02

3 Italy $5.71 3 Germany $10.94

4 UnitedKingdom $5.69 4 United

Kingdom $10.58

5 Germany $5.14 5 Italy $9.48

6 France $4.62 6 France $8.31

7 Canada $3.35 7 China $8.24

8 Hong Kong $2.48 8 Canada $6.77

9 Switzerland $2.41 9 Hong Kong $5.70

10 Spain $2.17 10 Switzerland $4.33

11 Netherlands $1.75 11 Australia $3.64

12 China $1.67 12 Spain $3.42

13 Australia $1.49 13 Netherlands $3.14

14 Taiwan $1.26 14 Taiwan $3.03

15 South Korea $0.99 15 India $2.95

Total wealth in USD trillions

2011 Total $92.26 2020 Total $ 201.95

16 Singapore $0.88 16 Russia $2.70

17 Russia $0.79 17 South Korea $2.50

18 Sweden $0.71 18 Singapore $2.42

19 India $0.58 19 Brazil $2.04

20 Brazil $0.57 20 Sweden $1.38

21 Turkey $0.46 21 Turkey $1.34

22 Mexico $0.36 22 Mexico $1.12

23 Norway $0.36 23 Norway $0.84

24 Malaysia $0.14 24 Malaysia $0.69

25 Poland $0.08 25 Poland $0.26

Source: Deloitte analysis and Oxford Economics DM EM


In terms of the total number of millionaire households, emerging markets are likely to see an upward movement in rank, with some economies rising meaningfully (South Korea, Mexico) and others dropping slightly (Taiwan, Turkey).

Global ranking by total number of millionaire households (2011–2020)

Number of millionaire households ('000s)

2011 Total 37,978 2020 Total 65,521

1 United States 10,541 1 United States 20,551

2 Japan 5,705 2 Japan 8,649

3 Germany 3,485 3 Germany 5,789

4 UnitedKingdom 2,904 4 United

Kingdom 3,814

5 France 2,653 5 Italy 3,552

6 Italy 2,476 6 France 3,346

7 Canada 1,745 7 China 2,500

8 China 1,312 8 Canada 2,413

9 Spain 1,022 9 South Korea 1,730

10 Taiwan 719 10 Australia 1,620

11 Netherlands 713 11 Spain 1,602

12 Hong Kong 711 12 Taiwan 1,264

13 Australia 698 13 Russia 1,205

14 Switzerland 573 14 Hong Kong 1,178

15 South Korea 520 15 Brazil 1,001

Number of millionaire households ('000s)

2011 Total 37,978 2020 Total 65,521

16 Russia 375 16 Netherlands 959

17 Brazil 303 17 Switzerland 872

18 India 286 18 India 694

19 Turkey 273 19 Mexico 615

20 Sweden 252 20 Turkey 601

21 Singapore 237 21 Singapore 449

22 Norway 178 22 Sweden 422

23 Mexico 170 23 Norway 319

24 Malaysia 76 24 Malaysia 249

25 Poland 50 25 Poland 126



In terms of the number of millionaire households, our study suggests that developed economies will lead the $1–$5 million wealth cohort, though the decade may potentially see a shift towards more households holding $1–$5 million in wealth in emerging markets (e.g., South Korea).

Global ranking by total number of millionaire households (2011–2020): $1–$5 million cohort

Number of millionaire households ('000s) — $1M–$5M Cohort

2011 Total 32,285 2020 Total 55,127


2 Japan 5,403 2 Japan 7,841

3 Germany 3,333 3 Germany 5,540

4 United Kingdom 2,798 4 United

Kingdom 3,685

5 France 2,533 5 France 3,109

6 Italy 2,103 6 Italy 3,016

7 Canada 1,546 7 Canada 2,152

8 Spain 911 8 South Korea 1,506

9 China 802 9 China 1,484

10 Taiwan 689 10 Australia 1,450

11 Netherlands 657 11 Spain 1,441

12 Australia 616 12 Taiwan 1,190

13 Hong Kong 581 13 Russia 1,003

14 Switzerland 468 14 Hong Kong 869

15 South Korea 435 15 Netherlands 821


2011 Total 32,285 2020 Total 55,127

16 Russia 269 16 Brazil 798

17 Turkey 211 17 Switzerland 657

18 India 210 18 Turkey 512

19 Sweden 209 19 India 508

20 Brazil 195 20 Mexico 507

21 Singapore 188 21 Singapore 366

22 Norway 159 22 Sweden 349

23 Mexico 124 23 Norway 277

24 Malaysia 53 24 Malaysia 212

25 Poland 38 25 Poland 86



Within the $5–$30 million wealth cohort, China is likely to be the standout emerging market among the 25 economies examined in this study. South Korea may see significant upward movement in its rank between 2011 and 2020.

Global ranking by total number of millionaire households (2011–2020): $5–$30 million cohort


2011 Total 4,823 2020 Total 8,674


2 China 464 2 Japan 712

3 Italy 355 3 China 689

4 Japan 282 4 Italy 486

5 Canada 182 5 Hong Kong 296

6 Hong Kong 120 6 Canada 234

7 Germany 114 7 Switzerland 194

8 Spain 100 8 France 185

9 France 96 9 South Korea 183

10 Switzerland 96 10 Germany 178

11 Brazil 91 11 Russia 153

12 Russia 85 12 Australia 146

13 United Kingdom 73 13 Spain 141

14 South Korea 71 14 Brazil 135

15 Australia 71 15 India 130


2011 Total 4,823 2020 Total 8,674

16 Turkey 52 16 Netherlands 110

17 India 50 17 Mexico 92

18 Mexico 44 18 United Kingdom 87

19 Singapore 43 19 Taiwan 63

20 Netherlands 40 20 Turkey 62

21 Sweden 30 21 Singapore 61

22 Taiwan 27 22 Sweden 56

23 Malaysia 19 23 Norway 36

24 Norway 15 24 Poland 32

25 Poland 11 25 Malaysia 29



Our analysis suggests that in the $30+ million wealth cohort, emerging markets may fare comparatively better than in smaller wealth cohorts. Most emerging markets are likely to see an improvement in their rank over the next decade. China may continue to hold its place as the economy with the second highest number of millionaires holding $30 million in wealth or more.

Global ranking by total number of millionaire households (2011–2020): $30+ million cohort

Number of millionaire households ('000s) — $30M +Cohort

2011 Total 871 2020 Total 1,719

1 United States 496 1 United States 620

2 China 46 2 China 327

3 Germany 38 3 Japan 96

4 United Kingdom 33 4 Germany 71

5 India 26 5 Brazil 67

6 France 24 6 India 56

7 Russia 21 7 France 52

8 Japan 20 8 Italy 50

9 Italy 18 9 Russia 49

10 Canada 17 10 United Kingdom 42

11 Brazil 17 11 South Korea 41

12 Netherlands 16 12 Netherlands 28

13 South Korea 14 13 Turkey 28

14 Sweden 13 14 Canada 27

15 Australia 12 15 Australia 24

Number of millionaire households ('000s) — $30M +Cohort

2011 Total 871 2020 Total 1,719

16 Spain 11 16 Singapore 22

17 Turkey 10 17 Switzerland 22

18 Hong Kong 10 18 Spain 20

19 Switzerland 9 19 Mexico 16

20 Singapore 5 20 Sweden 16

21 Taiwan 4 21 Hong Kong 13

22 Malaysia 4 22 Taiwan 11

23 Norway 4 23 Poland 8

24 Mexico 3 24 Malaysia 8

25 Poland 1 25 Norway 6

DM EMSource: Deloitte analysis and Oxford Economics


55%

42% 44% 43%

18%

11% 10% 9%

4%

6% 5% 5%

6%

6% 6%5%

2%

6% 6%5%

2%

5% 4%4%

4% 4%3%

2%

3% 2%2%

9%17% 19% 24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2011 2015 2020

U.S. Japan Italy UK Germany France Canada Switzerland Other countries

Although the share of U.S. millionaire wealth among global millionaires fell from 55% in 2000 to 42% in 2011, it is likely to retain its current share of global wealth over the next decade.

Share of U.S. wealth among global millionaires (2000–2020)



The proportion of the ultra-wealthy in relation to total households in 2020 is likely to be the highest in Singapore.

Developed markets: Ultra-wealthy ($30 m+) as a percent of the population of households


0.06%

0.05%

0.13%

0.09%

0.13%

0.04%

0.10%

0.07%

0.14%

0.18%

0.29%

0.22%

0.42%

0.43%

0.26%

0.44%

0.11%

0.14%

0.16%

0.18%

0.19%

0.20%

0.20%

0.21%

0.25%

0.25%

0.35%

0.37%

0.49%

0.52%

0.61%

1.82%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00%

Spain

Taiwan

United Kingdom

Germany

Canada

Japan

France

Italy

Australia

Norway

Sweden

Netherlands

U.S.

Hong Kong

Switzerland

Singapore

2020 2011


$4.2

$3.7

$3.7

$3.5

$2.1

$2.0

$1.5

$1.3

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5

Switzerland

Singapore

U.S.

Hong Kong

Russia

India

Germany

China

Wealth per household in $ millions

According to our analysis, millionaire households in Switzerland are likely to have an average of $4.2 million in wealth — the highest among the 25 economies included in this study. China may have the least average wealth among its millionaire households ($1.3 million per household).

Wealth per millionaire household in 2011


Global asset allocation preferences


Our analysis suggests that the asset allocation among the top 1% of households is relatively consistent across developed markets. However, Hong Kong, Italy, and Spain are likely to have a greater proportion of wealth attached to primary residential real estate.

Developed markets: Estimates of current asset allocation among the top 1% of households

18% 18% 21% 22%13% 15%

6%14%

20% 18%

8% 10%11% 7%

13%15%

14%

14%

20%18%

8%11%

11%

3% 6%5%

8%1%

6%6%

2%1%

1%

0%6%

5%8% 1%

6%6%

5%

10%7%

10%6% 6%

2%6%

7%7%

35% 20% 21%

22%28% 24%

51%45%

20%20%

24%30% 28%

36%27% 29%

11%18% 20% 25%

Hong Kong Japan Canada United States France Germany Italy Spain Switzerland U.K.

Domestic stocks Foreign stocks Domestic bonds Foreign bonds Cash & other Residential Business Equity



Our analysis suggests that the asset allocation among the top 1% of households may vary considerably across emerging markets, with primary residential real estate likely making up a significant portion of wealth in a number of emerging markets.

Emerging markets: Estimates of current asset allocation among the top 1% of households

50%

18%13%

5%

21% 23%

8%9%

7%

14% 15%

10%

8%9%

9%

10% 10%

2% 3%

3%

3% 3%

5%

5%13%

3%

7% 3%

35%

35%

36%

56%

20%15%

24%17% 17%

25%32%

China India Brazil Mexico Poland Russia

Domestic stocks Foreign stocks Domestic bonds Foreign bonds Cash & other Residential Business Equity

*

* This comprises wealth accruing from both domestic stocks and business equitySource: Deloitte analysis and Oxford Economics

United States Overview


The number of millionaire households in the U.S. seemed to peak in 2006. The most significant drop may have occurred during the financial crisis, although the number of millionaire households seems to have returned to its pre-crisis levels.

Number of millionaire households in the U.S. — 2000–2011

7.7 7.7 7.58.3

10.2

11.7

12.7 12.6

9.0 9.39.8

10.5

-40%

-30%

-20%

-10%

0%

10%

20%

30%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of millionaire households Annual growth rate


Num

ber o

f milli

onai

re h

ouse

hold

s in

milli

ons


According to our study, the top 1% of households in the U.S. will have more than a third of their wealth in businesses equity and about a third in stocks and bonds.

United States: Estimates of current portfolio composition among the top 10th percentile

22% 21% 21%

7% 7% 7%3% 2% 1%5% 7% 8%

5% 6% 7%

22%

36%44%

36%

22%12%

99-100th percentile 95-99th percentile 90-95th percentile

Domestic Stocks Foreign Stocks Domestic Bonds Cash Other Residential Business Equity

Percentile

36%

22%



Our analysis suggests that the total wealth of all U.S. millionaires will reach $87 trillion in 2020, a CAGR of 9% between 2011–2020. The United States will likely remain the largest wealth management market in the world.

Wealth among millionaire households in the U.S.

$25

$39

$58

$87

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2000 2011 2015 2020

Tota

l mill

iona

ire w

ealth

in U

SD tr

illio

ns

Growing wealth in the U.S.

56%

50%

49%

$25

$39

$58

$87496,000

households

2,292,000households

7,753,000households

$30m+

$5m–$30m

$1m –$5m

The number of millionaire households in 2011



5.737.75

11.51

15.751.60

2.29

2.89

4.18

0.41

0.5

0.55

0.62

0

5

10

15

20

25

30

2000 2011 2015 2020

Num

ber o

f mill

iona

ire h

ouse

hold

in m

illio

ns

$1m - $5m $5m - $30m $30m and above

According to this study, those in the $1m–$5m wealth cohort will reach 15.8 million households in 2020, a growth of 103% over the next decade. The $5m–30m cohort is also likely to exhibit strong growth, at 83% over the next decade, while the $30 m+ cohort is expected to grow 24%.

Growth in number of millionaire households by wealth cohorts in the U.S.

Total7.7

Total10.5

Total15.0

Total20.6

36%

43%

37%


Copyright © 2011 Deloitte Development LLC. All rights reserved.

Contrasting U.S. and China

Source: Deloitte Center for Financial Services and Oxford Economics, and IMFGDP projections are derived using IMF current estimates and Oxford Economics imputed growth rates.

As U.S. and Chinese GDP converge over the next decade, Chinese millionaire wealth may likely remain a relatively small proportion of U.S. millionaire wealth, reaching just under 10% by 2020.

14 16 18

39

58

87

4 69

1.7 3.68.2

0

10

20

30

40

50

60

70

80

90

2011 2015 2020U.S. GDP U.S. Wealth China GDP China Wealth

US

D T

rillio

ns

United States Regions


• Overview– In terms of the number of millionaire households, this study suggests growth rates of roughly 7–8% between 2010 and 2020, with Connecticut

growing the least (4% annualized growth) and South Dakota and North Dakota expected to grow the most (10% annualized growth).– In 2020, California, Texas, New York, and Florida will likely be home to the greatest number of millionaire households.– According to this study, Arizona, and Nevada will likely experience the greatest growth in net worth of millionaire households between 2009

and 2015. California, Texas, Florida, Oregon, Idaho, and Utah are also expected to see greater than average growth.

• Density– Our analysis indicates that in 2010, Connecticut held the highest density of millionaires with 14.2% of households holdings assets valued at

more than one million dollars. By 2020, New Jersey will likely be the state with the highest density of millionaires (24.6%).

• Regional Leaders– In the Northern Pacific region, Washington State may have the region’s most number of millionaires ― 534,000 by 2020.– In the Pacific Southwest region, California will likely be a leader in the number of millionaire households ― 2.7 million by 2020. However,

according to our study, the fastest growth rate of millionaire households in the region is found in Arizona, where millionaire households may grow at an annualized rate of 9%.

– In Mid-America, Texas is likely to have the most number of millionaires with 1.6 million by 2020. Texas may overtake New York in 2020 as the state with the second most amount of millionaires in the United States, next to California

– In the Southeast, Florida may have the highest number of millionaire households with 1.4 million in 2020. Georgia may potentially come in second with 674,000 millionaires in 2020.

– In the Northeast, New York may have the highest number of millionaire households with 1.5 million in 2020, potentially followed by New Jersey. – In the Midwest, Illinois is likely to have the highest number of millionaires with 803,000 in 2020, potentially followed by Wisconsin with 368,000

in 2020.– In North Central, Pennsylvania may have the highest number of millionaire households with 804,000 in 2020, potentially followed by Ohio. Most

states in this region will likely see a below-average annualized growth rate of 6% over the next decade.

Key forecasts for the United States regions: Millionaire households


14.2

13.9

13.7

11.1

10.8

10.4

18.1

18.5

20.1

15

15.5

15.4

22.6

23.2

24.6

19.0

19.5

20.0

0 5 10 15 20 25 30

Connecticut

Massachusetts

New Jersey

District of Columbia

Hawaii

New York

Density of millionaire households %

2020 2015 2010

In 2010, Connecticut was the state with the highest density of millionaire households (14.2%). Our study suggests that in 2020, New Jersey will have the highest density of millionaires (24.6%).

Density of millionaire households across U.S. states



226

11251 42 22 20 14

372

200

87 6632 31 21

534

296

13095

46 44 30

0

100

200

300

400

500

600

Washington Oregon Utah Idaho Alaska Montana Wyoming

# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

Growth rates in the Northern Pacific region

2010–2015 2010–2020Washington 9% 8%

Oregon 10% 9%

Utah 9% 9%

Idaho 8% 8%

Alaska 6% 7%

Montana 8% 7%

Wyoming 7% 7%

U.S. regional wealth: Northern Pacific

In the Northern Pacific region, Washington state is likely to have the largest number of millionaire households in the region by 2020 (534,000).



Growth rates in the Pacific Southwest region

2010–2015 2010–2020California 8% 7%

Arizona 9% 9%

Nevada 7% 6%

Hawaii 8% 7%

1,319

166 84 48

2,105

283128 71

2,745

434157 92

0

500

1,000

1,500

2,000

2,500

3,000

California Arizona Nevada Hawaii

# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

In the Pacific Southwest region, California will likely be the leading the state with 2.7 million millionaire households in 2020. However, our analysis suggests that the fastest growth rate in the number of millionaire households will be in Arizona with an annualized growth rate of 9%.

U.S. regional wealth: Pacific Southwest



717

180 162 78 77 76 48

1,117

273 239126 112 118 78

1,592

378 333182 160 168 109

0200400600800

10001200140016001800

Texas Colorado Missouri Oklahoma Louisiana Kansas New Mexico

# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

In the Mid America region, Texas will likely have the highest number of millionaire households in 2020 with 1.6 million. Texas may overtake New York in 2020 as the second richest state next to California.

U.S. regional wealth: Mid America


Growth rates in the Mid America region

2010–2015 2010–2020Texas 8% 8%

Colorado 7% 7%

Missouri 7% 7%

Oklahoma 8% 8%

Louisiana 6% 7%

Kansas 8% 7%

New Mexico 8% 8%


434

159 14278 43 15 12

591

260 239

12468 28 23

803

368 341

17098

42 340

100200300400500600700800900

Illinois Wisconsin Minnesota Iowa Nebraska South Dakota North Dakota

# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

In the Midwest region, Illinois will likely top the table with the highest number of millionaire households in 2020 with 803,000, potentially followed by Wisconsin with 368,000 in 2020.

U.S. regional wealth: Midwest


Growth rates in the Midwest region

2010–2015 2010–2020Illinois 5% 6%

Wisconsin 9% 8%

Minnesota 9% 8%

Iowa 8% 7%

Nebraska 8% 8%

South Dakota 11% 10%

North Dakota 11% 10%


401332 297

16895

581484

416

257145

804

666583

365

207

0100200300400500600700800900

Pennsylvania Ohio Michigan Indiana Kentucky# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

Pennsylvania may have the highest number of millionaire households with 804,000 in 2020, likely followed by Ohio. Our study indicates that most states in this region will see an annualized growth rate of 6% over the next decade.

U.S. regional wealth: North Central

Growth rates in the North Central region

2010–2015 2010–2020Pennsylvania 6% 7%

Ohio 6% 7%

Michigan 6% 6%

Indiana 7% 7%

Kentucky 7% 7%



Growth rates in the Northeast region

2010–2015 2010–2020New York 7% 6%

New Jersey 7% 6%

Massachusetts 5% 5%

Connecticut 4% 4%

New Hampshire 7% 7%

Maine 7% 7%

Rhode Island 9% 8%

Vermont 9% 8%

758

443352

19454 34 33 19

1,121

662

474

24883 50 50 32

1,458

831

603

314

117 71 69 450

200

400

600

800

1000

1200

1400

1600

New York New Jersey Massachusetts Connecticut New Hampshire Maine Rhode Island Vermont

# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

In the Northeast region, New York may potentially have the highest number of millionaire households in 2020 with 1.5 million, likely followed by New Jersey. Vermont may have the highest increase in its number of millionaires, with an annualized growth rate of 9%.

U.S. regional wealth: Northeast



596

327 287 264 221 178 115 89 65 45 33 29 23

995

474 431 428347

263191 143 99 61 50 37 36

1,445

674 615 596474

370264 206

140 86 70 45 520

200

400

600

800

1000

1200

1400

1600

Florida Georgia North Carolina

Virginia Maryland Tennessee South Carolina

Alabama Arkansas Mississippi West Virginia

District of Columbia

Delaware

# of

mill

iona

ires

in th

ousa

nds

2010 2015 2020

In the Southeast region, Florida may have the highest number of millionaire households in 2020 with 1.4 million, likely followed by Georgia with 674,000.

U.S. regional wealth: Southeast


Growth rates in the Southeast region

2010–2015 2010–2020Florida 9% 8%

Georgia 6% 7%

North Carolina 7% 7%

Virginia 8% 8%

Maryland 8% 7%

Tennessee 7% 7%

South Carolina 9% 8%

Arkansas 9% 8%

Alabama 8% 8%

Mississippi 5% 6%

District of Columbia 5% 4%

Delaware 9% 8%

West Virginia 9% 8%


Deloitte’s wealth study offers insights into the next decade of global wealth among millionaire households. The highlights discussed here are just a small sampling of the data points and trends that were unearthed. Deloitte is currently sharing these insights with clients and helping them to strategize on how the study results can help their businesses. For more information or to arrange an appointment to discuss these and hundreds of other findings from the study, please contact:

Andrew FreemanExecutive Director, Center for Financial ServicesDeloitte Services [email protected]

Val SrinivasHead of Research, Center for Financial ServicesDeloitte Services [email protected]

Want to learn more?

Appendix

Developed markets


As per our analysis, the number of millionaire households in Australia will grow from 698,000 to1,620,000 between 2011 and 2020, a growth rate of 132%. The $1m-$5m cohort will likely see the greatest growth, at 135%, while the $5m-$30m cohort and $30M+ cohorts will likely grow 107% and 102%, respectively, over the next decade. According to our study, the $1m-$5m cohort will continue to dominate the share of millionaire households, with 90% of millionaire households belonging to this cohort in 2020.

Australia: Growth in the number of millionaire households by wealth cohort

0.12

0.62

1.0

1.45

0.02

0.07

0.1

0.15

0.01

0.02

0.02

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Total.15

Total.70

Total1.13

Total1.62

369%

61%

44%

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Source: Deloitte Analysis and Oxford Economics


Our study suggests that the number of millionaire households in Canada will grow from 1,745,000 to 2,413,000 between 2011 and 2020, a growth rate of 38%. At 57%, the $30m+ cohort will likely see the greatest growth while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 39% and 28%, respectively, over the next decade. However, as per our analysis, the $1m-$5m cohort will continue to dominate the share of millionaire households, with 89% of millionaire households belonging to this cohort in 2020.

Canada: Growth in the number of millionaire households by wealth cohort

0.25

1.551.82

2.15

0.12

0.18

0.2

0.23

0.01

0.02

0.02

0.03

0

0.5

1

1.5

2

2.5

3

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.4

Total1.7

Total2.0

Total2.4

355%

17%

18%


As per our study, the number of millionaire households in France will grow from 2,653,000 to 3,346,000 between 2011 and 2020, a growth rate of 26%. At 116%, the $30m+ cohort will likely see the greatest growth, while our analysis suggests that the $1m-$5m cohort and $5m-$30m cohorts will grow 23% and 93%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 93% of millionaire households belonging to this cohort in 2020.

France: Growth in the number of millionaire households by wealth cohort

0.48

2.5

2.71

3.11

0.07

0.10.14

0.19

0.01

0.020.03

0.05

0

0.5

1

1.5

2

2.5

3

3.5

4

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Total0.6

Total2.7

Total2.9

Total3.3

377%

9%

16%

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions



As per our analysis, the number of millionaire households in Germany will grow from 3,485,000 to 5,789,000 between 2011 and 2020, a growth rate of 66%. The $30m+ cohort will likely see the greatest growth, at 86%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 66% and 56%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 96% of millionaire households belonging to this cohort in 2020.

Germany: Growth in the number of millionaire households by wealth cohort

1.02

3.33

4.22

5.54

0.04

0.11

0.13

0.18

0.01

0.04

0.06

0.07

0

1

2

3

4

5

6

7

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total1.1

Total3.5

Total4.4

Total5.8

227%

27%

31%



As per our analysis, the number of millionaire households in Hong Kong will grow from 711,000 to 1,178,000 between 2011 and 2020, a growth rate of 66%. The $5m-$30m cohort will likely see the greatest growth, at 147%, while the $1m-$5m cohort and $30m+ cohorts will likely grow 49% and 31%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 74% of millionaire households belonging to this cohort in 2020.

Hong Kong: Growth in the number of millionaire households by wealth cohort

0.25

0.580.72

0.87

0.01

0.12

0.17

0.3

0.01

0.01

0.01

0.01

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

167%

28%

30%

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total1.2

Total0.91

Total0.71

Total0.26



Our study suggests that the number of millionaire households in Italy will grow from 2,476,000 to 3,552,000 between 2011 and 2020, a growth rate of 43%. The $30m+ cohort will likely see the greatest growth, at 175%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 43% and 37%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 85% of millionaire households belonging to this cohort in 2020.

Italy: Growth in the number of millionaire households by wealth cohort

1.06

2.12.45

3.02

0.11

0.36

0.41

0.49

0.02

0.03

0.05

0

0.5

1

1.5

2

2.5

3

3.5

4

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total2.5

Total2.9

Total1.2

Total3.6

110%

17%

23%



Our study suggests that the number of millionaire households in Japan will grow from 5,705,000 to 8,649,000 between 2011 and 2020, a growth rate of 52%. According to our analysis, the $30m+ cohort will see the greatest growth, at 376%, while the $1m-$5m cohort and $5m-$30m cohorts will grow 45% and 153%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 91% of millionaire households belonging to this cohort in 2020.

Japan: Growth in the number of millionaire households by wealth cohort

4.675.4

6.43

7.84

0.23

0.28

0.46

0.71

0.01

0.02

0.05

0.1

0

1

2

3

4

5

6

7

8

9

10

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total4.9

Total5.7

Total6.9

Total8.7

16%

22%

25%



As per our analysis, the number of millionaire households in Netherlands will grow from 713,000 to 959,000 between 2011 and 2020, a growth rate of 34%. The $5m-$30m cohort will likely see the greatest growth, at 173%, while the $1m-$5m cohort and $30m+ cohorts will likely grow 25% and 81%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 86% of millionaire households belonging to this cohort in 2020.

Netherlands: Growth in the number of millionaire households by wealth cohort

0.23

0.660.74

0.82

0.02

0.04

0.08

0.11

0.01

0.02

0.02

0.03

0

0.2

0.4

0.6

0.8

1

1.2

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.25

Total.71

Total0.84

Total.96

186%

17%

15%



Our analysis suggests that the number of millionaire households in Norway will grow from 178,000 to 319,000 between 2011 and 2020, a growth rate of 79%. The $5m-$30m cohort will likely see the greatest growth, at 130%, while the $1m-$5m cohort and $30m+ cohorts will likely grow 74% and 69%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 87% of millionaire households belonging to this cohort in 2020.

Norway: Growth in the number of millionaire households by wealth cohort


0.04

0.16

0.22

0.28

0.01

0.02

0.03

0.04

0.001

0.004

0.005

0.01

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.05

Total0.18

Total0.25

Total0.32

254%

38%

29%



As per our analysis, the number of millionaire households in Singapore will grow from 237,000 to 449,000 between 2011 and 2020, a growth rate of 90%. The $30m+ cohort will likely see the greatest growth, at 315%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 95% and 41%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 82% of millionaire households belonging to this cohort in 2020.

Singapore: Growth in the number of millionaire households by wealth cohort

0.05

0.19

0.26

0.37

0.01

0.04

0.05

0.06

0.01

0.01

0.02

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total.06

Total0.24

Total.32

Total0.5

268%

36%

39%


Our study suggests that the number of millionaire households in Spain will grow from 1,022,000 to 1,602,000 between 2011 and 2020, a growth rate of 57%. The $30m+ cohort will likely see the greatest growth, at 84%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 58% and 41%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 90% of millionaire households belonging to this cohort in 2020.

Spain: Growth in the number of millionaire households by wealth cohort

0.23

0.911.03

1.44

0.03

0.1

0.11

0.14

0.002

0.01

0.01

0.02

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.26

Total1.0

Total1.1

Total1.6


295%

12%

40%


As per our analysis, the number of millionaire households in Sweden will grow from 252,000 to 422,000 between 2011 and 2020, a growth rate of 67%. Our study suggests that the $5m-$30m cohort will see the greatest growth, at 88%, while the $1m-$5m cohort and $30m+ cohorts will grow 67% and 27%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 83% of millionaire households belonging to this cohort in 2020.

Sweden: Growth in the number of millionaire households by wealth cohort

0.08

0.21

0.29

0.35

0.010

0.03

0.04

0.06

0.006

0.01

0.01

0.02

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.099

Total0.25

Total0.34

Total0.42

154%

36%

23%



Our study suggests that the number of millionaire households in Switzerland will grow from 573,000 to 872,000 between 2011 and 2020, a growth rate of 52%. As per our analysis, the $30m+ cohort will see the greatest growth, at 134%, while the $1m-$5m cohort and $5m-$30m cohorts will grow 40% and 103%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 75% of millionaire households belonging to this cohort in 2020.

Switzerland: Growth in the number of millionaire households by wealth cohort


0.21

0.470.54

0.66

0.03

0.96

0.14

0.19

0.001

0.01

0.01

0.02

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total.24

Total0.57

Total0.69

Total0.87

143%

26%

21%


As per our analysis, the number of millionaire households in the United Kingdom will grow from 2,904,000 to 3,814,000 between 2011 and 2020, a growth rate of 31%. Similarly to Australia, but unlike other DM economies included in this study, the $1m-$5m cohort in the United Kingdom will likely see the greatest growth, at 32%, while the $5m-$30m cohort and $30m+ cohorts will likely grow 20% and 27%, respectively, over the next decade. Our study suggests that the $1m-$5m cohort will continue to dominate the share of millionaire households, with 97% of millionaire households belonging to this cohort in 2020.

United Kingdom: Growth in the number of millionaire households by wealth cohort


1.91

2.803.17

3.680.06

0.07

0.08

0.09

0.03

0.03

0.04

0.04

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total1.99

Total2.90

Total3.28

Total3.81

46%

13%

16%

Emerging markets


Our study suggests that the number of millionaire households in Brazil will grow from 303,000 to 1,001,000 between 2011 and 2020, a growth rate of 230%. The $1m-$5m cohort in Brazil will likely see the greatest growth, at 309%, while the $5m-$30m cohort and $30m+ cohorts will likely grow 49% and 295%, respectively, over the next decade. The $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 80% of millionaire households belonging to this cohort in 2020.

Brazil: Growth in the number of millionaire households by wealth cohort

0.070.20

0.31

0.80

0.04

0.09

0.13

0.14

0.0004

0.02

0.04

0.07

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.1

Total0.3

Total0.48

Total1.0

189%

57%

110%



According to our study, the number of millionaire households in China will grow from 1,312,000 to 2,500,000 between 2011 and 2020, a growth rate of 91%. The $30m+ cohort will likely see the greatest growth, at 609%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 85% and 48%, respectively, over the next decade. However, our analysis suggests that the $1m-$5m cohort will continue to dominate the share of millionaire households, with 59% of millionaire households belonging to this cohort in 2020.

China: Growth in the number of millionaire households by wealth cohort

0.31

0.801.09

1.48

0.004

0.46

0.60

0.69

0

0.05

0.12

0.33

0

0.5

1

1.5

2

2.5

3

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total1.3

Total1.8

Total2.5

Total0.3

323%

39%

38%



Our analysis suggests that the number of millionaire households in India will grow from 286,000 to 694,000 between 2011 and 2020, a growth rate of 143%. The $5m-$30m cohort in India will likely see the greatest growth, at 161%, while the $1m-$5m cohort and $30m+ cohorts follow closely with likely growth rates of 142% and 115%, respectively, over the next decade. The $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 73% of millionaire households belonging to this cohort in 2020.

India: Growth in the number of millionaire households by wealth cohort

0.130.21

0.32

0.51

0.0

0.05

0.08

0.13

0.03

0.04

0.06

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.13

Total0.29

Total0.44

113%

53%

58%

Total0.69



Our study suggests that the number of millionaire households in Malaysia will grow from 76,000 to 249,000 between 2011 and 2020, a growth rate of 228%. The $1m-$5m cohort in Malaysia will likely see the greatest growth, at 305%, while the $5m-$30m cohort and $30m+ cohorts will likely grow 47% and 100%, respectively, over the next decade. The $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 85% of millionaire households belonging to this cohort in 2020.

Malaysia: Growth in the number of millionaire households by wealth cohort

0.010.05

0.14

0.21

0.01

0.02

0.02

0.03

0.0

0.004

0.01

0.01

0.00

0.05

0.10

0.15

0.20

0.25

0.30

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total.17

Total.076

Total.17

Total0.25

127%

355%

44%



As per our analysis, the number of millionaire households in Mexico will grow from 170,000 to 615,000 between 2011 and 2020, a growth rate of 262%. The $30m+ cohort will likely see the greatest growth, at 540%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 309% and 111%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 82% of millionaire households belonging to this cohort in 2020.

Mexico: Growth in the number of millionaire households by wealth cohort

0.0630.12

0.23

0.51

0.04

0.07

0.09

0

0.003

0.01

0.02

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.30

Total0.17

Total0.06

Total0.62

167%

77%

104%



Our analysis suggests that the number of millionaire households in Poland will grow from 50,000 to 126,000 between 2011 and 2020, a growth rate of 152%. The $30m+ cohort will likely see the greatest growth, at 712%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 129% and 181%, respectively, over the next decade. However, the $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 68% of millionaire households belonging to this cohort in 2020.

Poland: Growth in the number of millionaire households by wealth cohort

0.001

0

0.04 0.04

0.090.010.02

0.03

0.0010.002

0.01

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.061

Total0.126

Total0.05

Total0.003

1749%

22%

107%



As per our analysis, the number of millionaire households in Russia will grow from 375,000 to 1,205,000 between 2011 and 2020, a growth rate of 221%. The $1m-$5m cohort in Russia will likely see the greatest growth, at 273%, while the $5m-$30m cohort and $30m+ cohorts will likely grow 80% and 133%, respectively, over the next decade. The $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 83% of millionaire households belonging to this cohort in 2020.

Russia: Growth in the number of millionaire households by wealth cohort


0.021

0.067

0.27

0.66

1.00

0.09

0.14

0.15

0.02

0.04

0.05

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.84

Total1.21

Total0.38

Total0.07

451%

123%

44%


Our study suggests that the number of millionaire households in South Korea will grow from 520,000 to 1,730,000 between 2011 and 2020, a growth rate of 233%. As per our analysis, the $1m-$5m cohort in South Korea will see the greatest growth, at 246%, while the $5m-$30m cohort and $30m+ cohorts will likely grow 158% and 197%, respectively, over the next decade. The $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 87% of millionaire households belonging to this cohort in 2020.

South Korea: Growth in the number of millionaire households by wealth cohort


0.09

0.44

0.96

1.51

0.05

0.07

0.06

0.18

0.0

0.01

0.03

0.04

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total1.04

Total1.7

Total0.52

Total0.13

294%

101%

66%


As per our analysis, the number of millionaire households in Taiwan will grow from 719,000 to 1,264,000 between 2011 and 2020, a growth rate of 76%. The $30m+ cohort will likely see the greatest growth, at 181%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 73% and 135%, respectively, over the next decade. However, our analysis suggests that the $1m-$5m cohort will continue to dominate the share of millionaire households, with 94% of millionaire households belonging to this cohort in 2020.

Taiwan: Growth in the number of millionaire households by wealth cohort


0.26

0.69

0.92

1.19

0.02

0.03

0.03

0.06

0.002

0.004

0.01

0.01

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total1.3

Total0.96

Total0.72

Total0.28

160%

33%

32%


Our study suggests that the number of millionaire households in Turkey will grow from 273,000 to 601,000 between 2011 and 2020, a growth rate of 120%. As per our analysis, the $30m+ cohort in Turkey will likely see the greatest growth, at 179%, while the $1m-$5m cohort and $5m-$30m cohorts will likely grow 142% and 19%, respectively, over the next decade. The $1m-$5m cohort will likely continue to dominate the share of millionaire households, with 85% of millionaire households belonging to this cohort in 2020.

Turkey: Growth in the number of millionaire households by wealth cohort


0.05

0.21

0.31

0.51

0.01

0.05

0.06

0.06

0.01

0.01

0.03

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

2000 2011 2015 2020

$1m - $5m $5m - $30m $30m and above

Num

ber o

f mill

iona

ire h

ouse

hold

s in

mill

ions

Total0.37

Total0.6

Total0.27

Total0.06

325%

37%

60%


• The Deloitte Center for Financial Services collaborated with Oxford Economics on this study.• In this study we report cross-country estimates of the number, density and total wealth of households with net wealth: $1–$5m, $5–

$30m and $30m+ cohorts.• Wealth in this study includes financial assets (stocks, bonds, and other investments) and nonfinancial assets including primary

residence, durables, business equity, and other assets. Although it is customary for the wealthy to be grouped into categories according to levels of investable assets (i.e., excluding primary residence), on a cross-country basis the available data rarely makes such distinctions possible.

• The analysis presented in this report relies solely on actual published data based on surveys and other analyses and not on subjective judgements of individuals, thereby maximising the reliability of our estimates.

• Official exchange rates are used on the grounds that this metric is more directly relevant to wealth managers seeking to comparemarket size and investment opportunities across economies.

• Having estimated the current population of wealthy individuals by economy, our approach to forecasting future changes in their numbers involves two steps. First, a breakdown of wealth holdings across broad asset categories is established for each cohort of interest. Second, the value of these portfolios is projected using forecasts for relevant factors such as stock prices, house prices, and interest rates, which are contained within the Oxford Economics Global Model. This modelling approach allows for shifts in the overall distribution of wealth across time, rather than imposing aggregate wealth projections onto a static distribution. Using this global model also enables alternative forecasts of wealthy individuals to be made under varying assumptions for key economic andfinancial variables.

• Of course, concepts of what makes an individual ‘wealthy’ vary between economies and through time. This is because perceptions of relative wealth are framed by economic factors, such as the cost of living, which varies due to differences in relative price levels. Comparing the US and China, for example, it is clear that the standard of living associated with a given level of wealth would be very different between the two economies. Correcting for these differences in relative price levels using purchasing power parity (PPP) exchange rates shows that $1 million in the US, for example, feels more like $1.8 million in China. Equally, the real value of assets is eroded over time due to the effects of inflation, so an American with $1 million of assets in 1990 would have seen their real value fall to just $600,000 today. This helps to explain why being a ‘millionaire’ in the US is no longer viewed as the milestone of success that it was in the past. These caveats should be borne in mind when reviewing our results.

Study methodology


In the estimation of wealth among millionaire households, forecasts derived from the Oxford Economics Global Model were used. The table below summarizes the five year annual averages of some of these forecasts.

Study methodology: Forecast assumptions

GDP Growth Rate (%) Inflation (%) Savings Rate (%) Population Change (%)

2011–2015 2016–2020 2011–2015 2016–2020 2011–2015 2016–2020 2011–2015 2016–2020US 3.47% 2.80% 2.46% 2.51% 5.57% 2.88% 0.97% 0.96%China 8.83% 8.19% 3.05% 3.02% 36.11% 34.90% 0.61% 0.50%Australia 3.50% 3.24% 2.49% 2.51% 13.10% 13.21% 1.00% 0.93%Brazil 4.31% 3.55% 4.04% 4.00% 0.94% 6.18% 0.75% 0.60%Canada 3.77% 3.09% 2.42% 2.50% 3.89% 4.03% 0.93% 0.89%France 2.00% 1.74% 1.84% 1.86% 11.21% 9.92% 0.46% 0.39%Germany 1.95% 1.68% 1.65% 1.85% 10.32% 9.98% -0.07% -0.10%Hong Kong 4.81% 4.70% 1.97% 2.01% 5.58% 6.74% 0.91% 0.81%India 8.48% 7.30% 4.46% 3.64% 30.96% 31.89% 1.28% 1.10%Italy 1.47% 1.37% 2.01% 1.96% 9.42% 9.54% 0.03% -0.08%Japan 1.70% 1.01% 0.57% 0.60% 2.94% 5.58% -0.19% -0.34%Malaysia 4.70% 4.29% 2.97% 3.03% 19.36% 21.17% 1.48% 1.28%Mexico 4.41% 3.50% 3.10% 3.03% 5.53% 4.98% 0.87% 0.71%Netherlands 2.18% 1.61% 1.91% 1.87% 6.91% 6.48% 0.29% 0.26%Norway 2.54% 2.25% 2.28% 2.47% 4.35% 4.23% 0.74% 0.70%Poland 3.98% 2.85% 2.87% 2.40% 5.39% 5.50% -0.01% -0.07%Russia 4.84% 4.20% 5.66% 5.30% 8.45% 8.64% -0.34% -0.38%Singapore 5.34% 4.41% 1.33% 1.33% 4.01% 3.56% 0.90% 0.62%South Korea 4.33% 3.98% 2.76% 2.38% 3.92% 6.58% 0.27% 0.13%Spain 1.67% 1.63% 1.35% 1.65% 14.64% 11.06% 0.35% 0.23%Sweden 2.70% 2.14% 1.78% 1.80% 9.35% 8.04% 0.40% 0.44%Switzerland 1.88% 1.71% 1.20% 1.51% 13.96% 14.09% 0.75% 0.60%Taiwan 4.27% 4.08% 1.82% 1.83% 6.62% 5.26% 0.31% 0.20%Turkey 6.17% 5.38% 4.25% 4.05% 9.45% 10.35% 1.10% 0.96%United Kingdom 2.89% 2.29% 1.85% 2.00% 3.70% 3.89% 0.54% 0.53%

Source: Oxford Economics


• Business equity: Incorporates the value of many business-related wealth not held in share ownership of listed companies.

• Domestic stock market index: For each economy, our historical data comes from a standard index (for example for France we use the Paris SBF 250). The index value is then forecasted forward using the Oxford Global Macro Model.

• Change in the international stock market: The growth rate was constructed as an unweighted average of the change in the stock market indexes for the U.S. (Willshire 5000), Eurozone (Dow Jones Euro STOXX 50), Japan (TSE 1st Section Composite), and India (SENSEX).

• Domestic long-term bond yield: In many cases this is the forecasted yield of domestic government bonds with 10-year maturity. In the cases of Turkey and India, data limitations meant we had to use the short term rate plus a spread.

• International long-term bond yield: We used U.S. 10-year maturity bond yields as our benchmark international long term-bond yield.

• Short-term interest rates: In most cases the short-term rate is the three month interbank lending rate. However, due to data limitations there are exceptions to this; Brazil (the central bank's overnight lending rate), India (the central bank policy rate), Malaysia (overnight lending rate), and Turkey (one week reference ask rate).

Glossary


• Nominal residential house building: For all economies, this series is the forecasted investment in private dwellings, which equates to the value of the new housing stock being created each year.

• Net acquisition of financial assets: In all economies this is the forecasted acquisition of financial assets by households, removing any loans made to buy them.

• Real effective exchange rate: This is a broad-based measure of the real exchange rate, which covers each economy’s major trading partners. For some economies this is not computed (Brazil, India, Malaysia, and Poland), and we use the forecasted exchange rate with the dollar as a proxy.

• Exchange rate: For all economies, this is the forecasted end of period exchange rate with the U.S. dollar.

• Change in house prices: In most cases, the historical data comes from a standard house price index (for example, the U.S. index is the Federal Reserve's Federal Housing Finance Agency house price index), which is then forecast forward. For those economies where we don't have a house price index (Brazil, India, Russia, Singapore, and Turkey) the forecasted growth in nominal earnings was used as a proxy.

Glossary (cont.)


This presentation contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this presentation, rendering business, financial, investment, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this presentation.

About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a U.K. private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

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