Want to be termed rich? Must have $10 mn
It takes $10 million (Rs 39 crore) to be considered wealthy!
A report published by Barclays Wealth, entitled Insights: The True Value of Wealth, reveals that more than a third (35 per cent) of respondents believe individuals need to have assets worth at least $10 million (�5 million) to be considered wealthy.
The report is a global survey of 790 wealthy individuals, produced in partnership with the EIU that examines how wealthy individuals perceive and value wealth.
Having liquid assets of $10 million (excluding one’s home) also gives people a sense of security and makes them feel protected from the hazards of the world, the report states.
Having this buffer means people with assets of at least $10 million enjoy their wealth differently from those whose assets fall below this threshold, the report says. This level of wealth elevates their status so that they behave more like people with assets worth $50 million, than people with $5 million.
“This is the perceived level at which people believe they are truly wealthy as it gives them influence within their community and a greater sense of control over their destinies,” said Satya Bansal, head of Barclays Wealth in India.
“Being wealthy is about more than what you can buy. The research shows that wealthy individuals want to pursue personal goals like philanthropic ones and influence change within their community.”
The research also goes on to show that the term ‘millionaire’ has lost its cachet in a world that is experiencing a wealth boom. In the United Kingdom, there are more than 400,000 households with financial wealth in excess of $1 million and this figure will more than double to 940,000 households by 2016.
India has been amongst those at the vanguard of this growth trend after registering the world’s second fastest wealthy population growth rate, propelling the number of high net worth individuals in the country to cross the 100,000 mark, as per the World Wealth Report 2007.
“Strengthening rupee, robust economic growth, sound financial markets along with gains in income and credit expansion have been the key drivers of growth in India’s wealthy population, the research states.
Even though more people are acquiring wealth, there has been an increase in the cost of goods and services that people want such as concierges, butlers and travel services together with commitments like private school fees and health insurance. This is influencing the level of assets that people think they need to sustain their lifestyles.
The report also shows that wealth is about more than simply money; it is about having a better quality of life. Across the globe, more than half of respondents say that wealth has given them more leisure time. Those in Hong Kong (81 per cent), France and Switzerland (each 79 per cent) are most likely to say that their wealth has allowed them more time for leisure pursuits.
Wealth also has had a positive impact on people’s well-being with the majority of respondents saying it has increased their happiness. Europe scores highest, with 87 per cent of people living in Portugal and Italy, and 85 per cent of those in Spain, reporting a greater sense of happiness as a result of their wealth.
Universally, people tend to think of wealth in terms of assets and monetary value. But being wealthy for people in India is not just about money. Wealth, in India, is a symbol of power and a responsibility to do greater good.
Helping charitable organisations is particularly important to wealthier individuals. Support for charitable causes has long been part and parcel of being wealthy, and the report suggests this is strongest among the most affluent sections of the society.
Asked what proportion of their estate they planned to leave to charitable causes, a quarter (26 per cent) of respondents with assets under $1 million said that they planned to leave more than 10 per cent of their estate to charitable causes.
This rose to more than one-third (37 per cent) for those respondents with wealth in excess of $3 million – each of whom would therefore be leaving a minimum of $300,000 to charity.
