For first time since 2008, the number of Americans who could be classified as millionaires actually went down in 2022.
That drop wasn’t small either.
Close to 1.8 million Americans lost their millionaire status last year.
“The number of USD millionaires worldwide fell by 3.5 million during 2022 to 59.4 million. This figure does not, however, take into account 4.4 million ‘inflation millionaires’ who would no longer qualify if the millionaire threshold were adjusted for inflation in 2022,” reads the UBS and Credit Suisse annual global wealth report.
Americans, overall, lost an average of $27,700 of wealth per adult in 2022.
However, even bigger losses in wealth per adult were felt in Australia ($57,6060), Denmark ($30,390), New Zealand ($67,420), Canada ($44,320), Netherlands ($44,320), and Sweden ($69,110).
It was also the only year this century, other than 2008, in which the total value of household financial assets declined even when exchange rate changes are discounted. The key contributors to this situation were the reduced value of financial assets, a stronger US dollar and elevated inflation.
On top of that, wealth per adult fell by the the second largest amount since 2000.
According to the report, global wealth also declined by an eye-popping $11.3 trillion (or 2.4%) worldwide.
“The loss of global wealth was heavily concentrated in wealthier regions such as North America and Europe, which together shed USD 10.9 trillion,” the report states.
Meanwhile, the largest wealth increases in 2022 were recorded in Russia, Mexico, India and Brazil.
Also on the plus side, the report states “global wealth is expected to rise by 38% over the next five years.”
“We estimate wealth per adult to reach USD 110,270 in 2027 and the number of millionaires to reach 86 million while the number of ultra-high-net-worth individuals is likely to rise to 372,000,” the report predicts.
Plus, that 59.4 million number of millionaires that remain in the United States is still enough for America to lead the world in the number of millionaires.