Britain Likely to Lose Nearly One in Six Millionaires by 2028: The UBS Global Wealth Report

The UBS Global Wealth Report for 2024 forecasts significant changes in the distribution of dollar millionaires worldwide, with Britain set to experience a notable decline.

Summarized Insights:

• UK to lose 17% of millionaires.

• Non-dom status abolition impacts.

• Other countries to see growth.

• Taiwan's millionaires to surge 47%.

• Global wealth up 4.2% in 2023.

Britain is expected to lose nearly one in six of its US dollar millionaires by 2028, according to the UBS Global Wealth Report published on Wednesday. 

The report predicts a 17% decline in the number of dollar millionaires in Britain, falling to 2,542,464 in 2028 from 3,061,553 last year. 

This shift is part of a broader trend affecting millionaire populations globally.

Paul Donovan, Chief Economist of UBS Global Wealth Management, explained that Britain’s disproportionately high number of millionaires is partly to blame for the expected decline. 

“You have obviously seen in the UK over the last few years, as you have seen in other countries, implications arising from sanctions against Russia,” Donovan stated during a press conference.

Additionally, the UK's decision to abolish its “non-dom” status, which previously allowed wealthy foreign residents to avoid tax on overseas income, has had a minor impact. 

This change, coupled with global trends, has made other low-tax locations more attractive to the global wealthy population. 

Donovan highlighted countries like Dubai and Singapore as key destinations for millionaires seeking favorable tax environments.

The British real estate market has also felt the impact. 

Winkworth, a British real estate group, noted that demand for high-end properties has been affected by tax policies targeting wealthy individuals and a proposal by the new Labour government to tax private schools.

In contrast, other countries are expected to see growth in their millionaire populations. 

The UBS report forecasts a 16% increase in the US, a 14% rise in Germany, a 16% rise in France, a 28% surge in Japan, a 12% increase in Spain, and a 9% rise in Italy by 2028.

Global wealth, as defined by UBS, encompasses the value of financial assets plus real assets owned by households, minus their debts. 

The report, based on data from 56 markets accounting for approximately 92.2% of global wealth, reveals that global wealth grew by 4.2% in 2023 following a 3% decline in 2022.

By 2028, the number of adults worth more than $1 million is expected to increase in 52 of the 56 markets surveyed. 

The strongest growth in millionaires, at 47%, is anticipated in Taiwan, driven by the country’s booming microchip industry.

Over the past 15 years, the Asia-Pacific region has seen the most significant growth in wealth, increasing by almost 177%, followed by the Americas at nearly 146%, while Europe, the Middle East, and Africa (EMEA) experienced a more modest 44% rise. 

However, the Asia-Pacific region has also witnessed the sharpest increase in debt, up by more than 192% since 2008, significantly outpacing debt growth in EMEA and the Americas.

The UBS Global Wealth Report underscores the dynamic nature of global wealth distribution and the various factors influencing where the world’s millionaires choose to reside. 

As Britain prepares for a potential decline in its millionaire population, other nations stand ready to benefit from shifting global economic landscapes.