The difference is even higher for someone living in an underdeveloped nation. Just to give you a perspective — U.S average per capita income is $60,200, China sits at $16760 while the African nation of Niger only records a mere $990. Similar to the differences in per capita income across different regions, the composition of wealth that one owns varies as well.
The composition can vary greatly even within a country which has a high per capita income as in the case of the United States. The distribution of wealth depends on income classes which comprise the economy of a nation, like as will see in the case of the United States (infographic below).
The chart above breaks down the composition of wealth for the three income classes — Middle-income earners, Upper Class & the Ultra rich in the United States. These figures help us understand the composition of the net worth of families in these income classes.
Dissecting the information, we see that the Principle residence is the mainstay of net worth for most Americans, followed by their pension savings. 60% of the population falls in the middle-income group ($0-$471K net worth), who have their principal residence as the major contributor towards their net worth.
Together the house & pension accounts for almost 80% of the wealth of a middle-income American family, while the rest constitutes of liquid & financial assets and business equity.
Equities share in their net worth is only about 4% with the lower participation rate evident after the last the financial crisis where smaller investors’ savings got wiped out.
Its time to build a solid decentralized finance model which works for the collective good
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