Even the world’s richest people feel the sting of a depressed economy and shrinking stock portfolios.

The world’s rarefied club of billionaires dropped 83 members this year to 497 as recession and fallout from the terrorist attacks reduced their wealth. The group’s combined worth fell to $1.54 trillion from $1.73 trillion last year, according to Forbes magazine’s 16th annual ranking of billionaires released Thursday.

Among the missing: AOL Time Warner Chairman Steve Case, whose company stock has declined by about half since last year, and Gary Winnick, chairman of Global Crossing, which filed for bankruptcy protection in January.

They led a second year of decline in the number of billionaires since the tech downturn began pressuring the world economy in 2000. The largest drop of 91 came last year.

“Talk about churn, creation and destruction at work,” said Louisa Kroll, who edited Forbes’ March billionaires issue, which hits the newsstands today. “For two years in a row, it’s been falling fortunes.”

Microsoft co-founder Bill Gates lost $6 billion last year, but that didn’t stop him from being the richest person in the world for the eighth year in a row. With a net worth of $52.8 billion, Gates remained ahead of Warren Buffett, who held the No. 2 spot with $35 billion.

Only 25 members of the list are under age 40, led by 37-year-old computer founder Michael Dell at No. 18. The highest-ranking woman was No. 8, Alice Walton, with assets of $20.5 billion.

The list was set using stock prices and exchange rates as of Feb. 4.