{"id":78815,"date":"2015-02-04T23:57:44","date_gmt":"2015-02-04T21:57:44","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=78815"},"modified":"2015-02-04T15:26:59","modified_gmt":"2015-02-04T13:26:59","slug":"how-rich-are-you-really","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/78815\/how-rich-are-you-really\/","title":{"rendered":"How rich are you really?"},"content":{"rendered":"

Much has been said about the richest 1% of the global population holding more than half of the total global wealth -but where do you fit in on the global wealth scale?<\/p>\n

Global charity organisation, Oxfam, published research in January, which emphasised the staggering level of wealth disparity across the globe.<\/p>\n

However, few realise that they are probably closer to the wealthier side of the spectrum than they think.<\/p>\n

The claim, and data used to back it up, originates from Credit Suisse’s Global Wealth Report for 2014.<\/p>\n

The group’s data shows that approximately 35 million people – or 0.7% of the global adult population – are worth US$115.9 trillion, while\u00a0just over 90% of the population account for only US$38.7 trillion.<\/p>\n

\"Global<\/a>

Global Wealth Pyramid<\/p><\/div>\n

South African wealth<\/h3>\n

In a South African context, Credit Suisse estimates that 63,000 South Africans are part of the top 1% of global wealth holders – and 47,000 of these individuals are dollar millionaires.<\/p>\n

The group estimates that the average adult in the country has net wealth of US$22,073 (based on an average of US$19,761 in financial assets, US$7,296 in non-financial assets minus US$4,984 in debt).<\/p>\n

This accounts for 0.3% of world’s wealth, spread across the country’s adult population of 31.1 million.<\/p>\n

Here’s a breakdown of how South Africa looks in the global context of wealth distribution:<\/p>\n

\n\n\n\n\n\n\n
Net worth<\/strong><\/td>\nSouth Africa distribution<\/strong><\/td>\nGlobal distribution<\/strong><\/td>\n<\/tr>\n
Under US$10,000<\/td>\n68.2%<\/td>\n69.8%<\/td>\n<\/tr>\n
US$10,000 – US$100,000<\/td>\n28.9%<\/td>\n21.5%<\/td>\n<\/tr>\n
US$100 000 – US$1 million<\/td>\n2.8%<\/td>\n7.9%<\/td>\n<\/tr>\n
US$1 million+<\/td>\n0.2%<\/td>\n0.7%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

According to the group’s data, about 920,000 people (2.8% of the adult population in SA) are worth over US$100,000, fitting comfortably within the top 10% of wealth holders in the world.<\/p>\n

How rich are you?<\/h3>\n

In order to fit into the world’s richest 10%, all you would need is a net worth of around R897,000.<\/p>\n

Here is the minimum you would need to be worth to fit into each decile of global wealth distribution:<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
% of Global population<\/strong><\/td>\nMinimum Net Worth USD<\/strong><\/td>\nMinimum Net Worth ZAR<\/strong><\/td>\n<\/tr>\n
100%<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
90%<\/td>\n$137<\/td>\nR1 587<\/td>\n<\/tr>\n
80%<\/td>\n$494<\/td>\nR5 722<\/td>\n<\/tr>\n
70%<\/td>\n$1 086<\/td>\nR12 580<\/td>\n<\/tr>\n
60%<\/td>\n$2 129<\/td>\nR24\u00a0662<\/td>\n<\/tr>\n
50%<\/td>\n$3 641<\/td>\nR42 178<\/td>\n<\/tr>\n
40%<\/td>\n$5 824<\/td>\nR67 466<\/td>\n<\/tr>\n
30%<\/td>\n$10 103<\/td>\nR117 035<\/td>\n<\/tr>\n
20%<\/td>\n$20 909<\/td>\nR242 214<\/td>\n<\/tr>\n
10%<\/td>\n$77 450<\/td>\nR897 196<\/td>\n<\/tr>\n
5%<\/td>\n$209 586<\/td>\nR2 427 886<\/td>\n<\/tr>\n
1%<\/td>\n$798 285<\/td>\nR9 247 493<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Conversions at 1USD = 11.58 ZAR<\/em><\/p>\n

You are what you earn<\/h3>\n

For its findings on wealth distribution, Credit Suisse considers net wealth – that is, a person’s total asset value, minus debt.<\/p>\n

For this reason, the bottom decile (10%) of the global population in fact has a negative net worth, significantly changing where one would expect wealth distribution to lie.<\/p>\n

An individual with R500 to their name and with zero debt is considered to be wealthier than a person who has assets worth R500,000, but is R500,001 in debt.<\/p>\n

Analysts have argued that this does not provide an accurate representation of “rich” and “poor” as it is conventionally understood.<\/p>\n

Thus looking at income distribution is another metric one could use to seek out their “rich” standing.<\/p>\n

According to globalrichlist.com<\/a> – which bases its calculations on income data from the World Bank – with purchasing power parity applied, it only takes an annual income of R75,000 (R6,250 a month) to fall into the world’s richest 10%.<\/p>\n

In fact, the site’s data shows that earning R590 a month would make you a higher earner than half the world.<\/p>\n

Income required for the top 5 deciles<\/h3>\n
\n\n\n\n\n\n\n\n\n\n
% of Global population<\/strong><\/td>\nGross Annual Income<\/strong><\/td>\n<\/tr>\n
50%<\/td>\nR7 500<\/td>\n<\/tr>\n
40%<\/td>\nR10 500<\/td>\n<\/tr>\n
30%<\/td>\nR17 500<\/td>\n<\/tr>\n
20%<\/td>\nR36 000<\/td>\n<\/tr>\n
10%<\/td>\nR75 000<\/td>\n<\/tr>\n
5%<\/td>\nR95 000<\/td>\n<\/tr>\n
1%<\/td>\nR175 000<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Economist Mike Schussler agrees with the findings<\/a>, saying that a total net pay of about R8,500 per month (after taxes but including pension payments) would put someone in the top 5% of the world\u2019s adults.<\/p>\n

“A middle manager in a private company, or a director in the public service taking home, say, R300,000 after taxes…they certainly are in the top 0.25%,” he said in a column on MoneyWeb.<\/p>\n

“We can concentrate on the differences and see big gaps between earnings – but we can also see that many South Africans who have formal work end up rather on the wealthy side of the world.”<\/p>\n

More on wealth<\/h3>\n

Richest 1% to have more money than the rest in 2016: report<\/a><\/strong><\/p>\n

SA consumers losing control of their money<\/a><\/strong><\/p>\n

How long it would take SA\u2019s richest man to spend his money<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Are you in the richest 10% of the global population?<\/p>\n","protected":false},"author":10,"featured_media":59183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[223,9451,26,4109],"class_list":["post-78815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-credit-suisse","tag-global-wealth","tag-headline","tag-mike-schussler"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/78815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=78815"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/78815\/revisions"}],"predecessor-version":[{"id":79091,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/78815\/revisions\/79091"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/59183"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=78815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=78815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=78815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}