Britain is facing a potential loss of nearly one in six of its US dollar millionaires by 2028, according to a report published by UBS Global Wealth Management. However, the report forecasts growth in the number of millionaires in other countries, including a surge in Taiwan and a notable increase in the United States. The report, titled “UBS Global Wealth Report for 2024,” estimates that the number of dollar millionaires in Britain will fall by 17% to 2,542,464 in 2028, down from 3,061,553 last year. The Netherlands is also expected to experience a decline of 4%, dropping to 1,179,328 from 1,231,625.
Paul Donovan, Chief Economist of UBS Global Wealth Management, attributed the shift away from Britain in part to the country’s high concentration of millionaires. He stated that Britain currently has the third highest number of millionaires, and this figure is “disproportionately high.” Donovan also cited the impact of sanctions against Russia and the UK’s decision to abolish its “non-dom” status, which previously allowed wealthy individuals, often foreign residents, to avoid tax on overseas income. He emphasized that the “non-indigenous millionaire population” is constantly seeking low-tax locations, and this trend is not unique to Britain. He cited Dubai and Singapore as examples of countries that are attracting wealthy individuals.
Separately, British real estate group Winkworth reported that demand for high-end properties in the UK has been affected by tax policies targeting wealthy individuals and the new Labour government’s proposal to tax private schools.
In contrast to Britain’s projected decline, the UBS report forecasts significant growth in the number of dollar millionaires in other countries. The report anticipates a 16% increase in the United States by 2028, along with 14% growth in Germany, 16% in France, 28% in Japan, 12% in Spain, and 9% in Italy.
The UBS report defines “wealth” as the sum of financial assets and real assets owned by households, minus their debts. The report covers 56 markets representing approximately 92.2% of global wealth. In dollar terms, global wealth grew by 4.2% in 2023, after a decline of 3% in 2022. The report predicts that by 2028, the number of adults with a net worth of over $1 million will have increased in 52 out of the 56 markets analyzed.
Taiwan is expected to experience the most significant growth in millionaires, with a projected increase of 47%. This growth is attributed to the country’s thriving microchip industry. Over the past 15 years, the Asia-Pacific region has demonstrated the most substantial growth in wealth, with an increase of nearly 177%, followed by the Americas at nearly 146%. Europe, the Middle East, and Africa (EMEA) have seen a more modest increase of 44%. However, the Asia-Pacific region has also experienced the sharpest rise in debt, with a total debt increase of over 192% since 2008. This growth rate is more than 20 times that of EMEA and almost four times the increase for the Americas.
