How much do you need to belong to the top 1 percent in the world

To be a “One percenter” is a colloquially used benchmark to measure one’s status or wealth goal. This term is thrown around in conversation often enough, and I’m sure we have all heard it once or twice.

However, have you ever wondered what it truly means to be a one percenter in terms of yearly income?

$60.000. Yes. That’s right. If you make sixty thousand dollars per year after taxes, and do not have children, you belong to the top 1% of the world. While at a glance it may be shocking, it is important to realize just how many of us are on the planet, and how small the western world is in comparison, population wise. The higher-earning western world is approximated to be around 1 billion people – which is only around 14 percent of the total world population.

For example, if you live in India or Nigeria – and take home about $50.000 after-tax, you belong to the national 1%. Meanwhile in China, you need $80.000.

However, when looking at the wealthier countries, and more so the western economic regions, the numbers go up progressively. If we only include the western economic world, the general estimate becomes around $250.000.

This too depends greatly on the country. In Spain or Italy, you are well-set in the national top with $110.000 yearly after-tax. Canada, Germany, the UK, the Netherlands, Norway and Australia it takes $160.000 or more to belong to the 1% nationally.

The USA is a quite interesting case to look at. Averaging the whole union, $500.000 puts you in the top echelon of earners. However, it also depends which state you live in. For example, in Mississippi, New Mexico and West Virginia, $380 000 is enough to belong to the top 1% in the state. On the other side of the average - you need $1M or more, namely in Massachusetts, California and Connecticut.

The other heavy-hitters in the world are Switzerland where it is required to earn $800.000 per annum and Singapore at $700.000. One would guess that certain Arabic countries would be at the very top of this list, however clear income data is limited, although an estimate from several years ago puts the threshold in the United Arab Emirates to be at $920.000 per year.

Zdravko Anticic

zdravko@granturismo.org