Household wealth, inequality on the rise

There are almost 38,000 more millionaires in New Zealand than last year, according to the latest Credit Suisse Global Wealth Report.

The annual report analysing global wealth shows New Zealand adult wealth grew by 11.4 per cent in the year to March 2017, and total household wealth grew by 12.8 per cent, or US$132 billion (NZ$191 billion).

It also shows there were five New Zealanders who own more than US$1 billion compared with three last year.

The number of Kiwi millionaires, in US-dollar terms, leapt from 166,450 last year to 204,000.

Credit Suisse takes information for ultra-high-net-worth individuals from rich lists. According to the National Business Review Rich List, there are eight New Zealanders worth US$1b, including Graeme Hart and Peter Thiel.

Mean wealth per adult has risen from US$67,275 in 2000 to US$337,441, putting New Zealand in fourth place behind Switzerland, Australia and the US.

But New Zealand’s wealth inequality is almost four times that of Australia; 18 per cent of New Zealanders have a net worth below US$10,000, compared with only 5 per cent of Australians.

Nearly 1.8 million Kiwis own between US$100,000 and US$1m, and almost 204,000 people own more than US$1m.

First NZ Capital managing director Martin Poulsen said the report showed worldwide growth was growing and New Zealand was a part of it.

‘‘In terms of wider wealth growth, it’s certainly going to be helpful when our nearest and largest trading partners are doing well,’’ he said.

One concern in the report is the low wealth of young people around the world. It found rising student debt, less access to pensions and lower income mobility created a ‘‘perfect storm holding back wealth accumulation by the millennials in many countries’’.