Last update: 17.09.2024 08:31
Have you ever wondered how many millionaires there are in Switzerland? This question sheds a fascinating light on the distribution of wealth in one of the wealthiest countries in the world. Immerse yourself in the world of Swiss millionaires, discover surprising facts and find out how you too could one day belong to this exclusive circle.
When do you become a millionaire in Switzerland?
If we ask ourselves how many millionaires there are in Switzerland, we must first define what constitutes a millionaire. In Switzerland, anyone with net assets of at least one million francs is considered a millionaire. The official statistics from the Federal Tax Administration do not take into account the assets in your pension fund and pillar 3a. This is because these pension assets are exempt from both wealth tax and income tax until they are withdrawn. If you want to become a millionaire faster, simply add your pension assets to this.
How many millionaires are there in Switzerland?
According to the Swiss wealth tax statistics from the Federal Tax Administration (FTA), there were 374,320 millionaires in Switzerland in 2020. This figure is based on tax data and only takes into account taxable assets. The following chart shows the distribution of millionaires in Switzerland.
As we can see, most millionaires in Switzerland are "simple millionaires": around 217,000 have assets of between one and two million francs. The number of super-rich people with assets of over CHF 10 million is around 20,000.
How is wealth distributed in Switzerland?
The distribution of wealth in Switzerland shows a clear concentration among the wealthy. The following chart illustrates this.
As we can see, the 6.8 % of taxpayers with assets of over one million francs own 70.5 % of all assets in Switzerland. At the other end of the scale, around 22 % of taxpayers have no net assets at all.
What role does the pension fund play in wealth accumulation?
Many Swiss people do not perceive their pension fund assets as part of their wealth. A recent study1 shows that less than half of respondents (49%) count their pension fund as part of their own assets. This is significantly less than for other forms of assets such as investments (80%) or private pension provision in pillar 3a (69%). This is surprising, as the pension fund is the largest asset for most Swiss people.
But how much do Mr. and Mrs. Swiss have in their pension fund? Well, that's shown on the individual pension fund statement. The annual pension fund statistics for 2022 provide a statement on the average pension fund assets of Swiss nationals2 from the annual pension fund statistics. This shows that around 3.5 million active insured persons have around CHF 584 billion in assets (including fluctuation reserves and underfunding). This results in average pension fund assets of around CHF 166,000. But as I said, this is only a mathematical average.
How do I become a millionaire?
The path to becoming a millionaire usually involves the triad of earning - saving - investing. A good fun budget can help you make more of your income and have more money left over at the end of the month for dreams and investments. In Switzerland, there are now many opportunities to invest money in ETFs in the long term, cheaply and passively.
Let's look at the example of Lisa: She is 25 years old and wants to retire at 60 and then have a million in her account. Lisa already has a starting capital of CHF 10,000. With her long investment horizon, she could achieve a return of around 6.7 % per year over the next few decades with a global equity fund that reinvests the income on a quarterly basis. If Lisa puts aside 537 francs a month, she will be a millionaire by the age of 60.
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Summary: How many millionaires are there in Switzerland?
Money and wealth are topics that move many people. Who doesn't dream of being a millionaire? Unfortunately, for many of us this will remain a dream. There will always be lots of people with more money, higher salaries, nicer cars and bigger houses. On social media, we are shown every day what others apparently have - and we don't. It's then difficult to see your own progress in your finances if you're always enviously comparing yourself to others and have the feeling that they're doing better. This only makes you unhappy. It's much more useful to enjoy your own progress instead of constantly comparing yourself left and right.
And it's also comforting that money isn't everything - after all, even millionaires can't take a franc with them.
And if you have good health, a great family or real friends, you might even be richer than many millionaires.
According to official tax data, there were around 374,320 millionaires in Switzerland in 2020.
These figures do not take into account pension assets in the pension fund and pillar 3a.
If these assets were included, the number of millionaires in Switzerland would probably be significantly higher.
The path to becoming a millionaire involves consistent saving and smart investing over a long period of time.
With the right strategy and discipline, as shown in Lisa's example, it may also be possible for you to build up your millionaire fortune over the course of a working life.
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Disclaimer
We have taken great care with the content of this article. Nevertheless, we cannot rule out errors and cannot guarantee that it is correct and complete. This article is not a substitute for advice. We do not offer investment or tax advice and recommend that tax issues are always clarified with an expert and/or the relevant cantonal authority. We accept no liability whatsoever.
