How Many People Have 5 Million Dollars?

Understanding the landscape of wealth distribution offers valuable insights into global and national economies. Possessing significant financial assets, such as $5 million, places an individual in a distinct category within the broader financial spectrum. This level of wealth allows for a different set of financial considerations and opportunities, influencing investment strategies, lifestyle choices, and philanthropic endeavors. Exploring the characteristics of this affluent group provides a clearer picture of how wealth is accumulated and managed by a small segment of the population.

Defining High Net Worth

Wealth refers to an individual’s net worth or investable assets. Net worth is a comprehensive measure, calculated by subtracting all liabilities, such as loans, credit card balances, and mortgages, from all assets, which include cash, investments, real estate, and other valuable possessions. This provides a snapshot of an individual’s total financial standing. Investable assets, on the other hand, represent liquid or near-liquid holdings that can be readily converted into cash for investment purposes. These include stocks, bonds, mutual funds, and money market accounts, but exclude personal assets like a primary residence or vehicles.

Financial institutions and research firms categorize individuals into various wealth tiers based on these definitions. A High Net Worth Individual (HNWI) is defined as someone with at least $1 million in investable assets, excluding their primary residence. Moving up the scale, a Very High Net Worth Individual (VHNWI) holds $5 million or more in investable assets. An Ultra High Net Worth Individual (UHNWI) possesses $30 million or more in investable assets, although some definitions might start this category at $10 million. An individual with $5 million in wealth falls into the VHNWI category, signifying substantial financial resources.

Global and Regional Wealth Distribution

Individuals holding $5 million or more represent a small but impactful segment of the global population. The Capgemini World Wealth Report 2024 states the global High Net Worth Individual (HNWI) population, those with $1 million or more, reached 22.8 million in 2023. Within this group, individuals with $5 million to $30 million constituted 9.1% of the total HNWI population, approximately 2.075 million globally. Altrata’s 2024 Family Wealth Transfer Report indicates 1.21 million HNWIs worldwide possess over $5 million, collectively holding $30.9 trillion in wealth with an average of $25 million each.

North America demonstrated growth in HNWI wealth and population in 2023, driven by economic resilience and strong equity markets in the United States. The Capgemini report noted 7.2% growth in wealth and a 7.1% increase in population for North American HNWIs. The United States remains a dominant force in private wealth creation, accounting for 32% of global liquid investable wealth. As of March 2024, the USA was home to 5.5 million HNWIs, individuals with over $1 million in liquid investable assets.

Knight Frank’s 2024 Wealth Report indicates the wealthiest 1% of Americans are worth at least $5.8 million. Federal Reserve data from 2022 suggests U.S. households needed a minimum net worth of $11.2 million to qualify for the top 1%. Approximately 1.2 million U.S. households fall into this group, collectively holding 30% of the nation’s wealth. While direct numbers for individuals with exactly $5 million in net worth vary across reports due to different methodologies, these figures provide an overview of wealth concentration at and above this level.

Profiles of Wealth Holders

Individuals with $5 million or more in wealth share common demographic characteristics and pathways to wealth accumulation. Age plays a role, with most ultra-high-net-worth individuals, a category including those with $5 million or more, being in their 50s, 60s, and 70s. The average age of the UHNWI population is approximately 64.8 for men and 63.6 for women. This suggests accumulating wealth occurs over many years of career progression and strategic financial management.

Gender distribution among wealth holders shows disparity, though the proportion of wealthy women is increasing. Women constitute about 11% of the global ultra-high-net-worth population, a figure that has grown over the past decade. While many wealthy men are self-made, a higher proportion of wealthy women inherited some or all of their fortunes. The number of self-made women in this wealth bracket is also rising, particularly in regions like China.

Sources of wealth for these individuals are diverse, with certain sectors and strategies consistently observed. Entrepreneurship is a pathway, as individuals who build successful businesses accumulate capital through their ventures. Corporate executives also represent a portion of wealth holders, earning high incomes and accumulating assets over long careers. Investment, including strategic allocation in public and private markets, plays a role in wealth growth and preservation.

While inheritance accounts for a segment of this group, a portion of wealth holders, particularly men, achieve their financial standing through self-made efforts. These avenues highlight that wealth accumulation results from consistent effort, astute financial decisions, and, for some, generational transfers.