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High Net Worth Individual - Explained

What is a High-Net-Worth Individual?

Written by Jason Gordon

Updated at April 16th, 2022

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Table of Contents

What is a High Net Worth Individual?Who Qualifies as a High Net Worth Individual?Academic Research on High Net Worth Individuals

What is a High Net Worth Individual?

High net worth individual (HNWI) is a designation used in the financial services industry to describe an individual who has investable assets that exceed a certain threshold. Investible assets are also liquid assets such as stocks and bonds. 

There is no final threshold or amount that an individual must hold before he is classified as an HNWI, however, the financial assets held by such individuals must exceed $1 million before qualifying for this classification. Different financial institutions have different amount an individual must hold before he is regarded HNWI. The Very high net worth individual (VHNWI) is a classification for a person with a minimum of $5 million net worth.

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Who Qualifies as a High Net Worth Individual?

Different financial services institutions have a different benchmark for HNWI. In some regions, individuals who are affluent and have less than $1 million are put in the category of HNWI. Banks, for instance, require that customers have a certain amount of money in their accounts before they become eligible for the HNWI treatment, this amount could be $100,000 or more, depending on the financial institution. 

Generally, individuals with a minimum of $1 million liquid assets fall into the category of HNWI. According to a 2018 survey, over 14 million people are HNWIs in the world. Individuals with $5 million and above are however treated as very high net worth individuals. Here are the key points to know about a high net worth individual (HNWI);

  • A high net worth individual is an individual with liquid assets worth a certain amount.
  • It is a designation used in the financial services industry for individuals with a minimum of $1 million in liquid financial assets.
  • There is a high concentration of HNWI in the United States, with over 14 million people in the entire world.
  • Very high net worth individuals (VHNWIs) are those with a minimum of $5 million in liquid assets.
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