Britain to Lose Significant Number of Millionaires by 2028, Report Predicts

According to a report, Britain is anticipated to lose nearly one in six of its U.S. dollar millionaires by 2028. Meanwhile, other countries like the United States and Taiwan are expected to see a rise in their millionaire populations.

The UBS Global Wealth Report for 2024 forecasts a 17% decrease in the number of dollar millionaires in Britain, dropping from 3,061,553 last year to 2,542,464 by 2028. Similarly, the Netherlands is projected to see a 4% decline, reducing its millionaire count from 1,231,625 to 1,179,328.

Paul Donovan, Chief Economist at UBS Global Wealth Management, attributed this shift partly to Britain's currently high number of millionaires, which he described as "disproportionately high." He also cited the impact of sanctions against Russia and the abolition of the UK's "non-dom" status, which allowed wealthy, often foreign residents to avoid taxes on overseas income.

Donovan explained that the global millionaire population is constantly seeking low-tax environments, highlighting countries like Dubai and Singapore as attractive alternatives. This trend, he emphasized, is influenced more by the "pull factors" of other nations rather than UK-specific policies.

On the same day, British real estate group Winkworth noted a decrease in demand for high-end properties due to tax policies targeting wealthy individuals and a proposed tax on private schools by the new Labour government.

The UBS report predicts a rise in the number of dollar millionaires in various countries by 2028: a 16% increase in the United States and France, 14% in Germany, 28% in Japan, 12% in Spain, and 9% in Italy.

UBS defines "wealth" as the value of financial and real assets owned by households minus their debts. The report, covering 56 markets which represent around 92.2% of global wealth, noted a 4.2% growth in global wealth in 2023, following a 3% decline in 2022.

The number of adults with over $1 million in assets is expected to rise in 52 out of the 56 markets by 2028. Taiwan is projected to experience the highest growth in millionaires, at 47%, driven by its booming microchip industry.

Over the 15 years that UBS has published its report, the Asia-Pacific region has seen the largest increase in wealth, growing by nearly 177%, followed by the Americas at 146%. Europe, the Middle East, and Africa (EMEA) have seen a 44% increase. However, the Asia-Pacific region has also experienced the sharpest rise in debt, with total debt increasing by over 192% since 2008, significantly outpacing the debt growth in EMEA and the Americas.

Article source: https://www.reuters.com/world/uk/britain-likely-lose-nearly-one-six-millionaires-by-2028-report-says-2024-07-10/

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