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Based on new research, the typical worker in the UK would have to work half a century of earnings to attain the wealth level of the most affluent 10% of the population.

Widening Financial Divide Over Time

The study examined net worth statistics including the recent health crisis years and discovered that back in 2006-08, it would have needed nearly four decades of typical employment income to join the wealthiest decile of the financial hierarchy.

An economic expert associated with the analysis observed: "Economic disparities in Britain are presently so substantial that a typical full-time employee setting aside their entire income throughout their career would remain unable to attain the highest level of the wealth ladder."

Assessing the Economic Gap

The analysis revealed that the difference between the wealth of the typical individual and a person belonging to the top 10% was £1 million in the mid-2000s, but had increased to 1.3 million pounds in actual value by recent times.

The analyst added: "These gaps are especially alarming as wealth mobility in Britain is restricted – people that start life affluent tend to continue being rich, and conversely applies."

Relative Wealth Inequality

Despite the wealth gap widening in absolute terms, the share of complete net worth in the UK held by the most affluent homes – known as "comparative financial divide" – has been "broadly stable since the 1980s," per the study.

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

Contributors of Wealth Inequality

So-called "unearned" increases, through increasing property values and variations in pension valuations, were the main drivers of the expanding economic divide since 2010, according to the report.

These gains generally flowed to elderly homeowners, the study demonstrates – worsening the generational financial disparity.

Intergenerational Economic Gaps

The median economic difference between people in their early 30s and those in their early 60s grew by more than 100% in real terms, from £135,000 in 2006-08, to £310k.

Area-Based Disparities

Additionally, there were significant regional variations, with the average level of wealth in recent years reaching 290 thousand pounds in the SE of England, where housing costs have generally grown substantially, versus 110 thousand pounds in the north-east.

Health Crisis Years Impact

Amid the health crisis, when numerous employees were protected by the government-supported job retention program, and pandemic lockdowns limited opportunities for spending, the data shows numerous families were able to save, growing their net worth.

Wealthier families fared much better, however. "The typical family in the lowest-income quintile saw their cash reserves grow by only eighty pounds throughout the health crisis (from 2019 to 2022), approximately equivalent to the 24 months before COVID. Conversely, the typical family in the top income bracket saw their cash reserves rise by £4,200," the analysis concludes.