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Per new study, the average worker in the UK would require half a century of income to attain the net worth of the wealthiest 10% of the population.

Widening Economic Disparity Through the Years

This research reviewed net worth information from the Covid pandemic period and determined that back in the pre-financial crisis era, it would have needed 38 years of average worker salary to join the top 10th of the wealth distribution.

An economic expert associated with the report observed: "Wealth gaps in Britain are currently so significant that a typical full-time employee setting aside their entire income across their entire working life would remain unable to achieve the peak of the financial hierarchy."

Measuring the Economic Gap

The analysis discovered that the gap between the net worth of the typical individual and an individual in the top 10% was one million pounds in 2006-08, but had increased to £1.3m in real terms by recent times.

The economist added: "These gaps are especially alarming as wealth mobility in Britain is low – individuals who begin life affluent tend to continue being rich, and conversely applies."

Proportional Economic Disparity

Although the financial disparity expanding in specific figures, the share of complete net worth in the UK owned by the richest households – known as "comparative financial divide" – has been "largely unchanged since the 1980s," per the study.

During this period, complete net worth in the UK increased dramatically from triple the annual GDP, to approximately 7.5x.

Contributors of Wealth Inequality

Referred to as "unearned" increases, via increasing property values and adjustments to pension valuations, were the key contributors of the widening wealth gap over the past decade, as stated in the analysis.

These increases generally flowed to elderly homeowners, the study demonstrates – worsening the intergenerational wealth divide.

Age-Based Economic Gaps

The typical financial disparity between people in their early 30s and those in their early 60s increased over twofold in actual value, from £135,000 in pre-financial crisis, to 310 thousand pounds.

Regional Disparities

There were also stark geographic differences, with the median value of wealth in the pandemic period amounting to £290k in south-east England, where real estate values have tended to rise rapidly, as opposed to £110k in the NE of England.

Health Crisis Years Consequences

Amid the health crisis, when numerous employees were supported by the public-funded employment protection, and pandemic lockdowns curtailed consumption options, the data shows many households were able to save, growing their net worth.

Higher-income households performed significantly better, though. "The typical family in the poorest fifth saw their liquid savings increase by just £80 throughout the health crisis (2019-20 to 2021-22), broadly the same as the 24 months before COVID. Conversely, the average household in the highest income quintile saw their liquid savings increase by £4,200," the study reveals.