July 15, 2024
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UK to witness sharp decline in millionaire population by 2028, shocking study reveals!

UK to witness sharp decline in millionaire population by 2028, shocking study reveals!

In the realm of global wealth trends, the UK is bracing for a substantial exodus of millionaires, according to a recent analysis by Swiss bank UBS. This projection sheds light on the shifting landscape of wealth distribution and economic forces shaping the movement of affluent individuals worldwide. Let’s delve into the key insights and implications of this forecast.

  • The UK’s Millionaire Exodus:
    • By 2028, the UK is expected to witness a significant decline in its millionaire population, with a projected 17% decrease from 3.062 million in 2023 to 2.542 million in 2028. This trend stands out prominently against the backdrop of a rising number of millionaires in 52 out of 56 countries globally.
    • The Netherlands is also on a similar trajectory, with a projected 4% decline in its millionaire count by 2028. This confluence of millionaire outflows from the UK and the Netherlands signals a broader phenomenon at play in global wealth redistribution.
    • The attractiveness of the UK and the Netherlands as havens for wealthy individuals is undergoing a transformative shift due to dynamic economic factors. This includes the impact of sanctions on Russian assets, the allure of rival low-tax jurisdictions like the United Arab Emirates and Singapore, and a growing emphasis on proximity to businesses amidst economic nationalism trends.
  • Global Wealth Migration:
    • Taiwan emerges as a standout in the forecast, poised for a robust growth of 47% in its millionaire population by 2028. This growth is propelled by its flourishing microchip industry and anticipated influx of wealthy immigrants.
    • While there have been reports of wealthy individuals leaving the UK due to tax rule changes affecting non-domiciled residents, this is only a minor factor in UBS’s overall forecast. The study reveals that structural upheavals in global wealth dynamics are driving a broader narrative of “nomadic global wealth” seeking new destinations for residency and investment.
  • Implications and Outlook:
    • As the global economy undergoes profound shifts, the UK finds itself uniquely positioned as the third-largest hub for millionaires after the US and China. However, the disproportionate impact of millionaire relocations underscores the evolving nature of global wealth dynamics and the competitive landscape for attracting affluent individuals.
    • With an estimated $83.5 trillion in wealth poised for transfer in the coming decades, the global wealth migration trends highlighted by UBS and other research reports reflect a broader narrative of flux and transformation in the world of high-net-worth individuals.

In conclusion, the forecasted decline in UK millionaires serves as a poignant reflection of the evolving forces shaping global wealth migration. As countries recalibrate their economic policies and tax regimes to attract and retain affluent residents, the UK and other nations stand at a crossroads of opportunity and challenge in the realm of global wealth dynamics.

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