Millionaire households are on the rise, according to Spectrem Group. The number of U.S. households with net worth — not including primary residence — of $1 million or more grew 8% to 8.4 million from 2009 to 2010, and 16% from 2008 to 2009.
The number of ultra-high net worth households (net worth of $5 million or more) grew 8% to 1.06 million in 2010. Households with net worth of $500,000 or more grew 6% to 13.5 million, and those worth $100,000 or more grew 5% to 36.2 million during this time.
The number of millionaires remains below its 2007 peak of 9.2 million, but the number of households worth $100,000 or more is at an all-time high.
When asked how they obtained their wealth, the vast majority of affluent adults cite hard work as the most important factor, and a large proportion also stress the importance of education. Fewer than a third of any affluent segment say they inherited their wealth.
Millionaires are more likely than those with net worth of $100,000 to $1 million to hold advanced degrees. Ultra-high net worth Americans are more likely than affluents with lower net worth to work more than 60 hours per week.
The ultra-affluent are also most likely to work as senior corporate executives, physicians or dentists, or business owners.
Among affluents, those in the $100,000 to $1 million group have been most strongly affected by the recession and are most concerned about havi
ng enough to live on in retirement, and maintaining their standard of living.
Two thirds of the $100,000 to $1 million group (67%) are worried about having enough money set aside for retirement, and 31% have had to delay their retirement. Nearly half (46%) have vowed to not take on as much debt in the future, more than twice the number in either of the $1 million-plus groups.
One area in which all affluent consumers have had their confidence shaken is the value of their homes; about four in 10 of each group say the recession has shown them that their primary homes are not stable assets.
More than half (54%) of affluent adults with $500,000 or more in investable assets (not including real estate) say their households have been directly affected by declining real estate values, according to a separate study by Mintel.
On the whole, however, affluent adults expect to prosper. Eight in 10 affluent Americans are optimistic about their personal financial prospects in the next five years, and three quarters are optimistic about the next year.
Affluent women are less likely than their male counterparts to feel financially secure, and they’re more likely to have decreased or deferred spending because of the recession. Although the majority (72%) of female affluents are optimistic about their personal financial outlook, more than half (51%, compared to 36% of men) are pessimistic about how the U.S. economy will be doing a year from now.
Affluent adults over age 65 are more optimistic about their finances than their younger counterparts. They’re less likely to have changed spending habits or investment portfolios or to have lost confidence in financial institutions. [Affluent Market, Finance, Consumer Spending/Attitudes]
Sources: “Affluent Market Insights 2011,” Spectrem Group, Tom Wynn, Director, 840 S. Waukegan Rd., #211, Lakeforest, IL 60045; 224-544-5353; info@spectrem.com; www.spectrem.com; www.millionairecorner.com. Price: $49.95.
“Wealth Management – U.S. – January 2011,” Mintel International Group, Susan Menke, VP, Behavioral Economist, 351 W. Hubbard St., #801, Chicago, IL 60654; 312-932-0400; info@mintel.com; www.mintel.com. Price: £2,476 ($4,001).
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