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According to new research, the typical worker in the UK would have to work 52 years' worth of income to reach the net worth of the richest 10% of the population.

Expanding Financial Divide Over Time

The analysis analyzed net worth data including the Covid pandemic period and determined that back in 2006-08, it would have required 38 years' worth of average worker salary to join the wealthiest decile of the financial hierarchy.

An economic expert associated with the report observed: "Economic disparities in Britain are presently so substantial that a typical full-time employee saving all their earnings across their entire working life would remain unable to achieve the peak of the financial hierarchy."

Assessing the Wealth Divide

The analysis found that the difference between the wealth of the average person and a person belonging to the richest segment was £1m in the mid-2000s, but had increased to £1.3m in real terms by 2020-22.

The researcher further stated: "These differences are especially alarming as financial progression in Britain is low – those who commence life wealthy tend to remain affluent, and vice versa."

Proportional Economic Disparity

Despite the wealth gap growing in actual numbers, the percentage of total wealth in the UK owned by the wealthiest families – known as "proportional economic disparity" – has been "mostly consistent since the 1980s era," per the analysis.

Over this timeframe, overall assets in the UK increased dramatically from triple the gross domestic product, to almost 7.5 times.

Contributors of Economic Disparity

So-called "passive" gains, through rising house prices and adjustments to pension valuations, were the primary factors of the expanding economic divide from 2010 onward, as stated in the study.

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

Intergenerational Economic Gaps

The average wealth gap between people in their early 30s and sixty-somethings grew by more than 100% in inflation-adjusted terms, from 135 thousand pounds in 2006-08, to £310k.

Area-Based Disparities

Additionally, there were pronounced regional variations, with the typical amount of wealth in the pandemic period standing at 290 thousand pounds in the SE of England, where housing costs have typically increased quickly, versus 110 thousand pounds in the northeastern region.

COVID Era Effects

During the pandemic, when millions of workers were supported by the public-funded employment protection, and Covid shutdowns reduced expenditure possibilities, the statistics indicate numerous families were in a position to set aside money, enhancing their financial standing.

Higher-income households fared much better, though. "The typical family in the bottom income bracket saw their liquid savings increase by just £80 during the COVID years (across the pandemic timeframe), roughly identical to the pre-crisis period. Conversely, the average household in the top income bracket saw their available funds rise by £4,200," the report finds.