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Based on new analysis, the typical employee in the UK would have to work 52 years' worth of salary to achieve the wealth level of the richest 10% nationwide.

Expanding Wealth Gap Through the Years

This research examined net worth data covering the 2020-22 timeframe and discovered that in the pre-financial crisis era, it would have needed nearly four decades of typical employment income to reach the richest segment of the economic ladder.

An economic expert part of the report commented: "Economic disparities in Britain are presently so substantial that a average worker accumulating their complete salary across their entire working life would still not be able to attain the highest level of the economic scale."

Assessing the Financial Disparity

The research found that the difference between the assets of the median citizen and someone in the richest segment was one million pounds in the pre-crisis period, but had increased to £1.3 million in actual value by recent times.

The analyst continued: "These disparities are particularly worrying as economic movement in Britain is limited – people that start life affluent tend to stay wealthy, and conversely applies."

Relative Wealth Inequality

Even with the wealth gap widening in specific figures, the portion of complete net worth in the UK owned by the richest households – termed "relative wealth inequality" – has been "broadly stable since the 1980s," according to the research.

Over this timeframe, overall assets in the UK surged from three times the gross domestic product, to approximately 7.5x.

Drivers of Financial Divide

Referred to as "unearned" appreciation, via increasing property values and adjustments to retirement fund assessments, were the key contributors of the widening wealth gap since 2010, according to the study.

These appreciations generally flowed to elderly homeowners, the research shows – worsening the generational financial disparity.

Intergenerational Economic Gaps

The average wealth gap between thirty-somethings and sixty-somethings grew by more than 100% in real terms, from £135k in the mid-2000s, to £310,000.

Geographic Differences

There were also pronounced area-based disparities, with the typical amount of wealth in the pandemic period standing at £290k in south-east England, where real estate values have generally grown substantially, compared with £110,000 in the NE of England.

Pandemic Period Impact

During the pandemic, when millions of workers were covered under the government-supported job retention program, and Covid shutdowns curtailed consumption options, the data shows numerous families were capable of accumulating, increasing their wealth.

More affluent homes performed significantly better, however. "The typical family in the lowest-income quintile saw their available funds rise by merely £80 over the pandemic period (from 2019 to 2022), approximately equivalent to the 24 months before COVID. In contrast, the median home in the top income bracket saw their liquid savings rise by £4,200," the study reveals.