What Are High-Net-Worth Individuals?

In the UK, a high-net-worth individual (HNWI) is someone who has amassed investable (liquid) assets of £1m or more. ‘Investable’, in this context, means their assets can be converted to cash within a reasonable time — think cash, stocks, bonds, and some real estate investments.

Here we’ll review what high-net-worth individuals are and how they fit into the broader wealth categories.

What is a high-net-worth individual (HNWI)?

Simply put, a high-net-worth individual (HNWI) is someone who has £1m or more in liquid assets. Some HNWIs use specialised investment services to manage their wealth; others choose to manage their own money.

While the asset side of the equation is important, a HNWI might also have excessive liabilities exceeding £1m. Or they might have illiquid assets of more than £1m but lack investable cash. This is why the distinction is key: You’ll need to have at least £1m in investable assets to be considered a HNWI.

Some HNWIs require more complex investment services to manage, preserve, and increase their wealth. Estate and tax planning become significant pieces of the equation once you’ve hit the eight-figure mark in net worth. These people might also receive access to exclusive investment opportunities, like hedge funds and private equity placements.

What is an ultra-high-net-worth individual (UHNWI)?

The standard HNWI scale includes people with liquid assets ranging from £1m to £5m. You’re considered a very-high-net-worth individual (VHNWI) if you have liquid assets between £5m and £25m, and an ultra-high-net-worth individual (UHNWI) if you have liquid assets topping £25m.

This class of millionaire typically have asset portfolios containing:

• Real estate (including properties overseas).
• Substantial private & public investments.
• Large stakes in multiple businesses.
• Luxury items (private jet, yacht, art collection).
• Gold & other precious metals.

Some financial institutions, such as private banks and wealth management firms, exclusively serve HNWI and UHNWI. In the UK the most prominent private bank that even the Royal Family have been known to use is Coutts.

Coutts requires a minimum £1m of investments or £3m of cash deposits to open an account. And the private bank offers a range of services including wealth & estate planning, investment services, and philanthropy advice services among others.

High-net-worth individuals in context

Depending on the source, somewhere between 8% and 10% of American households have a net worth of £1m or more. By the statistics alone, it’s no wonder that many people have the goal of becoming a millionaire at some point in their lives.

Some people argue that £1m isn’t the number it used to be, given the current economic environment. But the reality is that even in times of higher-than-usual inflation and higher-than-comfortable interest rates, being a HNWI still puts you in the top decile (at the worst) of U.S. households in terms of wealth.

Recall again that your level of liquid assets doesn’t tell the whole story. Your financial circumstances also can include core components like

• Your total income
• Your total debt level and the type of debt
• How your assets are invested or concentrated
• Your estimated annual spending
• Your number of dependents

These are only some of the key components that make up your complete financial picture. Your level of liquid assets reveals only one aspect of your situation, so be sure to consider it in the context of the rest of your financial situation.

Do you want to be a high-net-worth individual?

It’s no secret that many people want to be HNWIs because of the access and choices it would offer them. Becoming a HNWI often takes years of diligent saving and investing, in addition to a fair amount of good fortune. But it should go without saying that there are many other worthy goals in life.

Again, an HNWI is someone who has amassed £1m in liquid assets or more. Any number approaching this is clearly a signal of financial success, so appreciate the progress you’ve made, no matter where you are on your net worth journey.

Frequently Asked Questions

What is the difference between HNWI and UHNWI?

Feature	HNWI & VHNWI	UHNWI
Assets	£1m to £25m	£25m+
Private Banking	Entry-level services.	Top-tier services with personally tailored products.
Investment Opportunities	Standard investment portfolios of stocks, mutual funds, real estate, unit trusts, bonds, etc.	Advanced investment portfolios with opportunities to invest directly in private equity, venture capital, hedge funds, and IPOS.
Philanthropy	Standard charity donation advice.	Strategic philanthropy planning and foundation setup services.
Estate Planning	Core estate planning services.	Multi-generational planning services with a family office support.

How many people have £1m in the UK?

The Adam Smith Institute have estimated that the UK has 3,061,553 millionaires as of 2023. However, through a combination of unfavourable tax policies, the UK is currently suffering the highest level of millionaire migration.

In 2024, 10,800 millionaires left the country as a result of the abolition of the ‘non-dom’ tax status and higher tax burdens. With the tax regime in the UK expected to become increasingly anti-wealthy, forecasts project the total number of millionaires in the UK will fall to 2,542,464 by 2028.

What is a Deca millionaire?

A Deca millionaire is a HWNI with a net worth of at least £10m, excluding liabilities. While this isn’t sufficient to be classed as an UHNWI, it may unlock more exclusive services within private banks such as tailored wealth planning, tax optimisation, and legacy planning services.