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Per new research, the median earner in the UK would need half a century of earnings to attain the financial standing of the richest 10% of the population.

Expanding Wealth Gap Over Time

The analysis reviewed net worth information from the Covid pandemic period and discovered that back in the mid-2000s, it would have required 38 years' worth of average worker salary to join the richest segment of the economic ladder.

A research lead involved with the analysis observed: "Financial divides in Britain are now so large that a regular employee accumulating their complete salary across their entire working life would remain unable to reach the top of the wealth ladder."

Assessing the Wealth Divide

The analysis revealed that the gap between the wealth of the average person and someone in the top 10% was £1m in 2006-08, but had expanded to £1.3m in actual value by 2020-22.

The economist added: "These gaps are particularly worrying as economic movement in Britain is restricted – people that start life affluent tend to stay wealthy, and conversely applies."

Proportional Economic Disparity

Despite the wealth gap widening in absolute terms, the share of overall assets in the UK held by the wealthiest families – termed "proportional economic disparity" – has been "broadly stable since the eighties," per the analysis.

Over this timeframe, complete net worth in the UK increased dramatically from thrice the yearly economic output, to nearly seven and a half times.

Drivers of Economic Disparity

Referred to as "unearned" increases, via growing real estate costs and changes in pension valuations, were the key contributors of the growing financial disparity from 2010 onward, per the study.

These appreciations typically went to senior citizens with real estate, the analysis reveals – intensifying the generational financial disparity.

Generational Financial Divides

The average wealth gap between people in their early 30s and those in their early 60s grew by more than 100% in actual value, from 135 thousand pounds in pre-financial crisis, to 310 thousand pounds.

Geographic Differences

Furthermore, the study revealed stark geographic differences, with the average level of assets in 2020-22 amounting to £290,000 in south-east England, where real estate values have generally grown substantially, versus £110k in the NE of England.

Pandemic Period Consequences

Throughout the COVID period, when countless laborers were protected by the taxpayer-backed furlough scheme, and Covid shutdowns curtailed consumption options, the data shows countless homes were able to save, growing their net worth.

Higher-income households fared much better, however. "The median home in the lowest-income quintile saw their available funds increase by just £80 during the COVID years (across the pandemic timeframe), roughly identical to the two years pre-pandemic. Conversely, the typical family in the wealthiest fifth saw their available funds rise by £4,200," the analysis concludes.