More and more Germans are becoming millions - the EMILLI movement!

More and more Germans are becoming millions - the EMILLI movement!

The current UBS Global Wealth Report has been analyzing global wealth distribution for 16 years and highlights notable trends. Particularly noteworthy is the global wealth growth that has been observed in recent years. Women in particular can benefit from this development. Figures show that fewer and fewer people have less than $10,000 (8,179 francs), indicating increasing financial stability. Nau.ch reports that A new group of wealthy individuals has emerged: the so-called Everyday Millionaires (EMILLIs for short), who hold assets between 1 and 5 million dollars.

There are now 52 million EMILLIs worldwide, which together represent assets of 107 trillion dollars. Last year, the number of these millionaires increased by 680,000, and estimates show that millions more could follow by 2029. This development has a positive impact on the luxury goods industry, which benefits from the increase in EMILLIs.

Investments and wealth distribution

An interesting phenomenon is that many EMILLIs invest their assets in real estate. However, these strategies can become problematic in times of liquidity constraints. Assets are calculated as the sum of real estate, stocks and company shares minus debts. Although the general wealth figures appear promising, there are some distortions from exchange rates and inflation that can influence the statistics mentioned.

The way wealth is created has also changed. Today this often happens more quickly through inheritances from real estate, profits from stocks or successes via social media. These changes lead to greater visibility of differences in living standards, which in turn fuels debate about social justice and possible redistributive measures.

A global comparison shows that North America dominates the wealth ranking. The highest wealth growth is forecast for Eastern Europe in 2024. In Turkey, average wealth has grown despite high inflation, which was primarily supported by price increases for stocks and real estate. In Western Europe, dollar assets fell slightly, while Germany recorded an inflation-adjusted increase of 2.5 percent.

Distribution of wealth in Germany

Current data shows that the median net worth in Germany has increased by more than 20 percent since 2020 and is now around $75,000. This means that around four million Germans are millionaires. The Gini coefficient, a measure of wealth inequality, has also fallen slightly since 2020. Germany is also facing a wave of inheritance: over three trillion dollars will be inherited in the next 20 to 30 years, which corresponds to around 17 percent of total assets.

For comparison, the Gini index for different countries shows that Germany had a value of 81.6% in 2019, while the global average scale is 88.5%. According to Wikipedia There are different Gini indices for numerous countries, with higher values ​​indicating unequal wealth distribution.

Overall, the discussion about wealth distribution and equity is more relevant than ever as communities and states grapple with the challenges and opportunities of a changing economic landscape.