Global data indicates that a remarkably small fraction of the world's population, estimated to be less than 1%, earns more than $US100,000 per year. This figure highlights significant global income disparities, positioning such earners within the wealthiest strata worldwide. The assertion was recently reiterated by Claire Lehmann, who stated in a tweet, "> Less than 1% of the world's population makes more than $US100,000 per year."
While the exact percentage can fluctuate based on data sources and methodologies, reports consistently place individuals earning $100,000 or more annually in the top global income percentiles. For instance, some analyses suggest that earning over $124,720 annually places an individual in the 99th percentile of global earners. Other data indicates that a global annual income of approximately $60,000 can qualify an individual for the top 1% of income earners, underscoring the vast economic divide.
The disparity between income and wealth is also crucial to understanding these figures. Income refers to annual earnings, while wealth encompasses total assets minus debts. The threshold for being in the top 1% globally by wealth is considerably higher, often exceeding $1 million. This distinction clarifies that while a $100,000 income is substantial on a global scale, it is distinct from the accumulation of significant net worth.
The average global personal income is significantly lower, estimated at around $9,733 per year, with the median per-capita household income being even lower at approximately $2,920 annually. This stark contrast emphasizes the economic reality for the majority of the world's inhabitants, where a substantial portion lives on less than $20,000 per year. The concentration of income among the highest earners continues to be a prominent feature of the global economic landscape.