Finance: What It Means to Be Rich in 2024

Being rich in France goes beyond just a number on a paycheck. It’s a lifestyle, a substantial wealth, and a distinct social status. The report on the rich in France, 2024 edition, offers us a clear vision of this reality. We will explore the main findings of this revealing report.

Finance and income wealth

France, European leader in attractiveness, surprises us with this 2024 wealth report. Indeed, it informs us that 4.7 million French people (out of 68 million) are considered rich in income. These individuals have a monthly income after taxes exceeding €3,860 for a single person, €5,790 for a couple, or €9,650 for a family with two children over fourteen years of age. This represents about 7.4% of the French population.

Despite a 1.5-point drop compared to 2011, these rich people in France have seen their standard of living increase. In fact, half of them have a standard of living above 1.28 times the wealth threshold in 2021, compared to 1.26 times in 2011.

The increase in the income of the rich is particularly noticeable at the top of the income scale. The top 1% of the richest in France captured 7.7% of all pre-tax income in the early 1980s. This share reached 12.7% in 2022, according to the World Inequality Database.

Thus, finance plays a crucial role, as income from investments (Bitcoin and other cryptos included) and financial assets reinforce this wealth. The rich in France are therefore supported by a combination of high salaries and diversified financial flows. And unfortunately fraudsters.

Wealth in assets

In terms of assets, the report reveals that 16.9% of French households have a net wealth exceeding €531,000, which is more than three times the median wealth (excluding debt). Among these households, the top 10% have more than €716,300.

The highest net worths are very high: millionaires represent 5% of households, and the top 1% hold at least €2.2 million per household.

The concentration of wealth in the hands of the richest has increased to the detriment of the rest of the population. The share of the top 10% has risen from 41% to 47% of all household assets between 2010 and 2021.

At the same time, the weight of the 500 largest professional fortunes has almost increased tenfold in 20 years, from €124 billion in 2003 to €1.170 trillion in 2023. This concentration of wealth is largely attributed to the massive profits derived from finance and large French groups (such as LVMH), creating significant economic disparities.

Senior, older, and male executives

The report also highlights the demographic characteristics of the rich in France. In 2020, 25.5% of executives were considered rich, almost twice as high as independents, and incomparably higher than the probability of being rich for a worker (1%) or an employee (2%).

Senior executives, particularly those in the private sector, dominate this category, with 43% of the income-rich being private sector senior executives and 21% being public sector executives.

Wealth is also related to age: the share of the rich in the population increases with age, from 1% of households under 30 to 10% among those aged 55-59, reaching a peak at 15% between 60 and 64 years. Moreover, the resources of wealthy couples come primarily from men’s incomes.

Men are twice as likely as women to hold positions offering salaries in the top 10% of the hierarchy, and 3.4 times more likely to be present in the top 1%. Hence, the rich in France are often older men (such as Bernard Arnault), holding senior executive positions and earning significant income from finance and financial investments.

The 2024 report on the rich in France reveals marked disparities in terms of income and assets, highlighting the importance of finance in the accumulation of wealth and raising many questions about economic equity.