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According to recent analysis, the average worker in the UK would have to work half a century of income to reach the financial standing of the wealthiest 10% of the population.

Growing Wealth Gap Through the Years

The analysis reviewed net worth data including the Covid pandemic period and determined that in the pre-financial crisis era, it would have taken 38 years' worth of average worker salary to reach the richest segment of the wealth distribution.

An economic expert part of the report stated: "Economic disparities in Britain are presently so substantial that a typical full-time employee saving all their earnings across their entire working life would still not be able to attain the highest level of the economic scale."

Assessing the Financial Disparity

The study found that the gap between the net worth of the typical individual and an individual in the wealthiest decile was £1 million in the mid-2000s, but had widened to £1.3m in inflation-adjusted terms by 2020-22.

The analyst added: "These disparities are particularly worrying as wealth mobility in Britain is limited – those who commence life well-off tend to remain affluent, and vice versa."

Comparative Financial Divide

Even with the financial disparity expanding in actual numbers, the portion of total wealth in the UK held by the most affluent homes – termed "proportional economic disparity" – has been "broadly stable since the 1980s," according to the analysis.

During this period, overall assets in the UK rose substantially from three times the gross domestic product, to approximately 7.5x.

Drivers of Economic Disparity

Referred to as "automatic" increases, through rising house prices and changes in pension valuations, were the primary factors of the expanding economic divide over the past decade, per the study.

These increases typically went to elderly homeowners, the analysis reveals – exacerbating the age-based economic gap.

Intergenerational Financial Divides

The median economic difference between people in their early 30s and sixty-somethings increased over twofold in actual value, from £135,000 in 2006-08, to £310k.

Regional Differences

Additionally, there were significant regional variations, with the average level of net worth in recent years reaching £290k in the SE of England, where real estate values have tended to rise rapidly, versus £110k in the NE of England.

Health Crisis Years Impact

Throughout the COVID period, when millions of workers were protected by the government-supported job retention program, and pandemic lockdowns reduced expenditure possibilities, the statistics indicate countless homes were able to save, increasing their wealth.

Higher-income households performed significantly better, however. "The median home in the poorest fifth saw their liquid savings rise by merely £80 throughout the health crisis (2019-20 to 2021-22), roughly identical to the pre-crisis period. In contrast, the typical family in the top income bracket saw their available funds increase by £4,200," the report finds.