In Spain, the idea that millionaires are born rich through inheritance is changing, or at least that is what the various data and analyzes say. Recent figures show that in Spain the number of “self-made” millionaires has increased, making room for those who have inherited their fortune. However, as in so many aspects, the data can tell different realities.
Millionaires in Spain according to UBS and Forbes. The report ‘Billionaire Ambitions Report 2024’ prepared by the Swiss bank UBS, reveals that 44% of billionaires in Spain have created their fortune from their own work or investments.
However, this figure contrasts with the data published by Forbeswhich show that around 74% of the big millionaires in Spain are rich thanks to the inheritances they have received from their family, leaving only 26% of those who would have obtained it on their own merits.
Rich or very very rich: that’s the difference. So, which data is correct, UBS or Forbes? The short answer is both, because the difference is in the type of millionaire analyzed and the sample size. Forbes focuses only on billionaires (with assets in the billions of euros), while UBS includes millionaires with higher assets, but not necessarily at the global peak.
According to data from the Charles Schwab study, it takes 2.3 million dollars to be considered a rich person. But to be considered a UHNWI (Ultra High Net Worth Individuals) or people with assets available to invest of more than 30 million dollars. Depending on where that threshold is placed, the percentages also change.
Heirs and own fortune. If only those who have more than 30 million dollars to invest (the UHNWI) are taken into account, the percentage of Spanish millionaires who have inherited their fortune drops to the 14% indicated by UBS. This percentage also coincides with that given by the study by Jonathan Wai and David Lincoln in which the nature of fortunes around the world is analyzed.
According to the data from this study, in Spain 38.4% of millionaires have received an inheritance and have multiplied that money through investments or their own projects, creating a new fortune from a previous financial base, while 47.5% have managed to build their wealth without receiving a significant inheritance.
These figures show that meritocracy among millionaires exists, but adds the nuance that, in many cases, this fortune is the result of a combination of inheritance and personal effort.
Don’t call it meritocracy: call it environment. When it comes to creating a new fortune, it is not all about inheriting money, but it also largely depends on the social environment and the opportunities offered by being born into a wealthy family. Having access to contacts, preferred education, and financial support increases the chances of success, even for those considered “self-made.”
According to a report by the Social Observatory of the La Caixa Foundation, it takes four generations to rise from a situation of poverty to the middle class. The report ‘To Have and Have Not – How to Bridge the Gap in Opportunities’ prepared by the OECD, points out that the socioeconomic background of parents contributes up to 75% to the definition of their children’s opportunities. That is to say, a young person born into a wealthy family has more opportunities and economic support to start projects—which can be a failure, but also a resounding success—than a young person with few resources. That family support must also be taken into consideration when labeling “self-made” fortunes. Although this does not detract from the merit.
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Imagen | Unsplash (Shane)
