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Per new analysis, the average employee in the UK would have to work half a century of salary to attain the wealth level of the wealthiest 10% nationwide.

Expanding Wealth Gap Over Time

This research reviewed net worth data covering the recent health crisis years and found that during the mid-2000s, it would have needed 38 years' worth of typical employment income to enter the wealthiest decile of the wealth distribution.

An economic expert associated with the analysis commented: "Economic disparities in Britain are now so large that a regular employee setting aside their entire income across their entire working life would still not be able to achieve the peak of the wealth ladder."

Measuring the Financial Disparity

The study revealed that the gap between the net worth of the typical individual and an individual in the wealthiest decile was £1m in the pre-crisis period, but had widened to £1.3 million in actual value by the pandemic years.

The researcher further stated: "These disparities are particularly worrying as financial progression in Britain is low – individuals who begin life wealthy tend to remain affluent, and the opposite holds true."

Relative Wealth Inequality

Despite the economic divide growing in absolute terms, the percentage of overall assets in the UK possessed by the most affluent homes – called "comparative financial divide" – has been "mostly consistent since the 1980s era," as stated in the research.

Throughout these years, total wealth in the UK rose substantially from three times the gross domestic product, to almost 7.5 times.

Drivers of Economic Disparity

Termed "unearned" gains, through rising house prices and adjustments to retirement fund assessments, were the key contributors of the growing financial disparity from 2010 onward, according to the report.

These increases typically went to older, property-owning households, the analysis reveals – exacerbating the age-based economic gap.

Age-Based Financial Divides

The average wealth gap between people in their early 30s and those in their early 60s more than doubled in real terms, from £135k in pre-financial crisis, to £310,000.

Area-Based Variations

Additionally, there were stark area-based disparities, with the average level of net worth in 2020-22 reaching 290 thousand pounds in the SE of England, where property prices have generally grown substantially, compared with £110k in the NE of England.

Health Crisis Years Consequences

During the pandemic, when countless laborers were protected by the public-funded employment protection, and Covid shutdowns reduced expenditure possibilities, the statistics indicate countless homes were capable of accumulating, increasing their wealth.

More affluent homes fared much better, nevertheless. "The median home in the poorest fifth saw their available funds increase by just £80 during the COVID years (from 2019 to 2022), broadly the same as the pre-crisis period. Conversely, the median home in the highest income quintile saw their cash reserves rise by £4,200," the analysis concludes.