Pace of newly-minted millionaires spikes as wealth hits record high: RBC

Move over old-money millionaires. The number of nouveau riche in the world is growing at pace never before seen in history, and it’s not showing any signs of slowing any time soon.

That’s one of the key findings of the latest World Wealth Report, released this week by global consulting firm Capgemini and RBC Wealth Management.

The report shows staggering year-over-year increases in 2013 in both the number of people considered to be high-net-worth individuals and record-setting global fortunes.

A high-net-worth individual is defined as someone with at least US$1 million in investable wealth, excluding one’s primary residence.

According to the report, membership in the world’s wealthy club climbed by 1.76 million last year, marking a 15 per cent growth rate and the second-largest increase since 2000.

At the same time, their investable wealth grew by nearly 14 per cent to reach a record high of $52.6 trillion.

Just who are these folks, you ask? (And are they single?)

What countries house the most millionaires?

Plenty of the world's high-net-worth population live right here in North America, still the world’s wealthiest region. The continent’s wealthy enjoyed a banner year in 2013, expanding in numbers by 16 per cent to 4.33 million. Investable wealth, meanwhile, grew by 17 per cent to reach $14.9 trillion, the report found.

Hard on our heels is Asia-Pacific. The number of wealthy individuals in that region shot up 17 per cent last year to reach 4.32 million, while wealth expanded by 18 per cent to $14.2 trillion US.

Europe also showed strong year-over-year growth to reach 3.83 million individuals last year with US$12.4 trillion in investable wealth)

Befitting our global reputation, Canada’s growth was modest by comparison. The number of wealthy Canadians numbered 320,000 in 2013, up 7.2 per cent over 2012. Overall wealth reached $979 billion US, up 9.1 per cent.

Latin America was the big exception to the strong global wealth growth trend, recording increases of only 4 per cent.

According to the survey, most of the world’s newly minted millionaires fell within the $1 million to $5 million wealth segment (68%), with an average money chest of $1.9 million. Twenty-one per cent of respondents had more than $10 million.

Salary and bonuses, including stock options, investments, and real estate (excluding primary residence) made up more than two-thirds of the source of wealth for respondents.

David Agnew, CEO of RBC Wealth Management Canada, cited surging equity markets and improving economies as major drivers in the growth of both population and wealth levels.

Nearly 40 per cent of the current level of wealth has been created in the past five years alone, he told Yahoo Canada Finance.

The trend is expected to remain strong in the near future, with wealth among this well-heeled demographic forecast to reach a new high of $64.3 trillion US by 2016 – a 22 per cent jump from 2013 levels and approximately $12 trillion US in new wealth.

Asia-Pacific is expected to see the biggest growth rate, eclipsing the rest of the world in both wealth and the number of wealthy individuals by 2015.

But, said Agnew, “We are expecting robust growth in most regions.”

A recent report from the Canadian Centre for Policy Alternatives found a disturbing divide between the rich and poor in Canada. The report found that almost 70 per cent of all Canadian wealth belongs to the wealthiest 20 per cent of families.

In fact, Canada's richest 86 families, including the Rogers, Westons, Thomsons and Irvings, held the same amount of wealth in 2012 as the bottom 11.4 million Canadians combined.

Statistics Canada data measured the median net worth of Canadian families at $243,800 in 2012.