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Per fresh analysis, the typical earner in the UK would require over five decades of income to achieve the wealth level of the richest 10% nationwide.

Expanding Economic Disparity Through the Years

The analysis reviewed net worth data from the recent health crisis years and found that during the pre-financial crisis era, it would have taken 38 years of typical employment income to join the top 10th of the financial hierarchy.

A senior economist involved with the study stated: "Financial divides in Britain are currently so significant that a average worker setting aside their entire income throughout their career would remain unable to attain the highest level of the financial hierarchy."

Assessing the Economic Gap

The research found that the difference between the net worth of the typical individual and an individual in the top 10% was £1m in the mid-2000s, but had widened to 1.3 million pounds in actual value by 2020-22.

The researcher further stated: "These gaps are particularly worrying as economic movement in Britain is low – people that start life wealthy tend to stay wealthy, and conversely applies."

Relative Wealth Inequality

Even with the economic divide growing in specific figures, the portion of overall assets in the UK possessed by the richest households – known as "proportional economic disparity" – has been "mostly consistent since the 1980s," per the study.

During this period, overall assets in the UK rose substantially from three times the gross domestic product, to almost 7.5 times.

Drivers of Economic Disparity

Termed "passive" appreciation, via increasing property values and variations in superannuation evaluations, were the main drivers of the widening wealth gap from 2010 onward, as stated in the study.

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

Intergenerational Financial Divides

The median economic difference between individuals aged 30-34 and sixty-somethings increased over twofold in real terms, from 135 thousand pounds in 2006-08, to 310 thousand pounds.

Area-Based Differences

Furthermore, the study revealed stark area-based disparities, with the average level of net worth in recent years reaching 290 thousand pounds in the southeastern region, where property prices have generally grown substantially, as opposed to £110k in the northeastern region.

Health Crisis Years Impact

During the pandemic, when millions of workers were covered under the taxpayer-backed furlough scheme, and health crisis restrictions reduced expenditure possibilities, the statistics indicate countless homes were in a position to set aside money, increasing their wealth.

More affluent homes performed significantly better, though. "The average household in the poorest fifth saw their cash reserves rise by merely £80 throughout the health crisis (from 2019 to 2022), roughly identical to the 24 months before COVID. Conversely, the typical family in the top income bracket saw their liquid savings increase by £4,200," the study reveals.