The Rise of Millionaires in the U.S. and Global Wealth Trends in 2024
The U.S. saw a significant increase in the number of millionaires last year, with 562,000 new millionaires created. The high-net-worth population in the country grew by 7.6% to reach 7.9 million in 2024, surpassing the global rise of 2.6%. This surge was driven by the strong performance of the U.S. stock market, which delivered double-digit returns to high-net-worth individuals (HNWIs). The total number of millionaires worldwide reached a record 23.4 million.
The wealth concentration trend was evident in 2024, with the ultra-rich emerging as the clear winners. The number of "millionaires next door," individuals with assets between $1 million and $5 million, grew by 2.4%, while the ultrawealthy population, those with assets of $30 million or more, grew by 6.2%. The report highlighted that ultra-HNWIs remained resilient during market volatility, focusing on high-growth opportunities, while Millionaires Next Door opted for safer, low-yield investments.
Traditional investments like real estate, stocks, and fixed income assets remain popular among the wealthy. However, alternative investments such as currencies, private equity, and digital assets have gained traction in recent years. HNWI investors allocated 15% of their portfolios to alternative investments in January 2025, up from 9% in 2018.
The report also pointed out the upcoming "great wealth transfer," where older generations are expected to pass on $83.5 trillion to Gen X, millennials, and Gen Z by 2048. Women are projected to receive a significant share of this wealth transfer in the next decade. Wealth managers are advised to adapt to the changing expectations of the next generation and leverage digital capabilities, potentially augmented with AI, to meet their needs.
India and Japan stood out globally, with both countries experiencing 5.6% growth in their high-net-worth populations. India added 20,000 millionaires, while Japan added 210,000 millionaires in 2024. In contrast, China's HNWI population declined by 1%. Europe saw a decline of 2.1% in its high-net-worth population, mainly due to economic stagnation in countries like the United Kingdom and Germany. The Middle East and Latin America also experienced a decrease in the number of high-net-worth individuals.
In conclusion, the U.S. witnessed a significant increase in millionaires in 2024, driven by the strong performance of the stock market. The wealth concentration trend favored the ultra-rich, while traditional and alternative investments remained popular among high-net-worth individuals. The looming "great wealth transfer" presents both opportunities and risks for wealth managers, who are advised to adapt to the changing expectations of the next generation and leverage digital capabilities to meet their needs.