Population of High Net Worth Individuals in the UK grew to 609,400 in 2021 as wealth rose globally

The number of people in the UK with investable assets of $1 million or more, called High Net Worth Individuals (HNWI), rose 6.3 per cent to 609,400 in 2021 as wealth increased globally.

The 2022 World Wealth Report by Capgemini on Tuesday revealed that the global HNWI population grew 7.8 per cent in 2021, with 1.7 million new millionaires. The HNWI population worldwide rose to about 22.5 million. 

Europe had the second highest increase in HNWI, after North America, as wealth grew by 7.5 per cent to $18.8 trillion. Global HNWI wealth increased 8 per cent, by $6.4 trillion, to $86 trillion in 2021.

The report found that the population of HNWI in Europe grew 6.7 per cent to 5.7 million in 2021, with many of these millionaires attracted to investments in ESG and digital assets. 

66 per cent of Europe’s HNWI saw Environmental, Social, and Governmental impact as an important investment objective. 55 per cent of global HNWIs said investing in causes with a positive ESG impact was critical, with 64 per cent of HNWIs asking for ESG scores to learn about a fund’s societal impact. 

71 per cent of global HNWI invested in digital assets, with 91 per cent of those HNWI below 40. They said cryptocurrencies were their favourite digital investment.

The report said that stimulus packages by governments, low interest rates, increased liquidity, stock market gains, and Covid vaccinations drove 2021’s wealth growth and increase in HNWI population. 

In contrast, the world’s 500 richest people have lost a total of $1.4 trillion so far in 2022, shedding $206 billion on just Monday, according to the Bloomberg Billionaires Index, as rising interest rates and soaring inflation roil markets.