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Per new research, the typical worker in the UK would require over five decades of earnings to attain the financial standing of the wealthiest 10% of the population.

Expanding Wealth Gap Through the Years

This research reviewed financial assets data covering the 2020-22 timeframe and determined that during the pre-financial crisis era, it would have required 38 years' worth of median full-time earnings to enter the top 10th of the wealth distribution.

A research lead associated with the report commented: "Financial divides in Britain are presently so substantial that a average worker setting aside their entire income during their working years would remain unable to reach the top of the economic scale."

Assessing the Economic Gap

The research revealed that the difference between the wealth of the average person and a person belonging to the richest segment was £1m in the pre-crisis period, but had widened to 1.3 million pounds in actual value by the pandemic years.

The economist continued: "These differences are doubly concerning as wealth mobility in Britain is limited – those who commence life affluent tend to remain affluent, and vice versa."

Comparative Financial Divide

Although the wealth gap expanding in absolute terms, the share of total wealth in the UK owned by the richest households – known as "comparative financial divide" – has been "broadly stable since the eighties," per the research.

During this period, total wealth in the UK increased dramatically from triple the gross domestic product, to almost 7.5 times.

Drivers of Economic Disparity

Referred to as "automatic" increases, via increasing property values and variations in retirement fund assessments, were the key contributors of the expanding economic divide over the past decade, according to the report.

These appreciations tended to accrue to senior citizens with real estate, the analysis reveals – intensifying the age-based economic gap.

Age-Based Wealth Disparities

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

Area-Based Differences

There were also significant geographic differences, with the typical amount of net worth in recent years standing at £290,000 in south-east England, where property prices have generally grown substantially, compared with 110 thousand pounds in the NE of England.

Pandemic Period Impact

During the pandemic, when numerous employees were covered under the taxpayer-backed furlough scheme, and pandemic lockdowns reduced expenditure possibilities, the statistics indicate countless homes were in a position to set aside money, increasing their wealth.

More affluent homes achieved superior outcomes, nevertheless. "The average household in the poorest fifth saw their cash reserves grow by only eighty pounds during the COVID years (from 2019 to 2022), broadly the same as the pre-crisis period. Conversely, the median home in the top income bracket saw their cash reserves grow by 4,200 pounds," the report finds.