The term wealthy class often evokes a vague image of being “rich,” but its specific definition is not widely understood. In this article, we explain the definition of the wealthy class, annual income benchmarks, the differences from asset holders, and their common characteristics.
Is there an official definition of the “wealthy class”?
There is no official definition of the wealthy class, and the criteria vary by research institution.In Japan, the classification used by Nomura Research Institute is widely referenced.
Nomura Research Institute’s five-tier classification
Classification is based on net financial assets (the amount remaining after liabilities are deducted from deposits, savings, stocks, bonds, and similar assets; real estate is not included):
・Super wealthy: 500 million yen or more
・Wealthy class: 100 million yen or more and less than 500 million yen
・Affluent class: 50 million yen or more and less than 100 million yen
・Upper mass class: 30 million yen or more and less than 50 million yen
・Mass class: less than 30 million yen
Japan’s wealthy class accounts for about 2% of the population
Even when the super wealthy and the wealthy class are combined, they account for only about 2% of Japan’s population.Even including the affluent class, the figure remains only around 8%.
What annual income qualifies someone for the wealthy class?
In general, an annual income of 20 million yen or more is often regarded as the threshold for the wealthy class.Some also use taxpayers with annual taxable income of more than 30 million yen (roughly an annual income of 100 million yen) as a benchmark.
How is the wealthy class different from asset holders?
The wealthy class refers to people with substantial financial assets, while asset holders also possess substantial tangible assets, including real estate.People who own large amounts of land and buildings, such as families that have been landowners for generations, are considered asset holders even if their annual income is modest.
What characteristics do wealthy people tend to share?
Choosing possessions to suit the occasion
They are accustomed to social settings and are known for selecting their possessions according to the situation.
Strong health awareness
They consistently manage their physical and mental condition in order to sustain high performance.
Remaining calm even in unexpected situations
A defining trait is their broad perspective, which allows them to see situations like the COVID-19 pandemic as opportunities for growth.
Summary
The definition of the wealthy class varies by research institution, but net financial assets of 100 million yen or more is a commonly used benchmark. When planning asset building that includes real estate investment, it is important to understand the classifications and characteristics of the wealthy class.
Frequently Asked Questions (FAQ)
- Q. If someone owns a lot of real estate, are they still not considered part of the wealthy class?
- A. Under Nomura Research Institute’s definition, real estate is not included, so if financial assets are limited, that person is not classified as part of the wealthy class. However, they are considered an asset holder.
- Q. What is the most effective asset-building method for becoming part of the wealthy class?
- A. The three fundamentals are maximizing income, optimizing spending, and long-term diversified investing. A portfolio that combines real estate investment with financial products is effective.
- Q. Is Japan’s wealthy class increasing?
- A. According to research by Nomura Research Institute, both the number of wealthy households and the value of their assets continue to trend upward.
