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Based on fresh research, the typical earner in the UK would have to work half a century of salary to achieve the financial standing of the most affluent 10% of the population.

Expanding Financial Divide Over Time

The analysis analyzed net worth data covering the recent health crisis years and found that in the pre-financial crisis era, it would have taken nearly four decades of median full-time earnings to join the richest segment of the economic ladder.

A senior economist involved with the study stated: "Financial divides in Britain are currently so significant that a regular employee saving all their earnings during their working years would remain unable to attain the highest level of the wealth ladder."

Quantifying the Economic Gap

The analysis discovered that the gap between the assets of the average person and someone in the top 10% was £1m in the pre-crisis period, but had widened to £1.3m in inflation-adjusted terms by recent times.

The analyst added: "These differences are especially alarming as financial progression in Britain is limited – people that start life affluent tend to continue being rich, and conversely applies."

Relative Wealth Inequality

Although the economic divide expanding in actual numbers, the share of overall assets in the UK possessed by the wealthiest families – called "proportional economic disparity" – has been "mostly consistent since the 1980s," as stated in the study.

Throughout these years, total wealth in the UK rose substantially from triple the gross domestic product, to nearly seven and a half times.

Drivers of Economic Disparity

Referred to as "automatic" increases, by means of rising house prices and changes in retirement fund assessments, were the main drivers of the growing financial disparity since 2010, per the report.

These appreciations tended to accrue to elderly homeowners, the research shows – exacerbating the age-based economic gap.

Age-Based Economic Gaps

The median economic difference between individuals aged 30-34 and people aged 60-64 grew by more than 100% in inflation-adjusted terms, from 135 thousand pounds in the mid-2000s, to £310k.

Area-Based Disparities

There were also pronounced geographic differences, with the average level of assets in recent years standing at £290k in south-east England, where housing costs have generally grown substantially, as opposed to £110k in the north-east.

Pandemic Period Impact

During the pandemic, when millions of workers were supported by the government-supported job retention program, and health crisis restrictions limited opportunities for spending, the statistics indicate many households were able to save, growing their net worth.

Wealthier families achieved superior outcomes, nevertheless. "The typical family in the lowest-income quintile saw their liquid savings rise by merely £80 during the COVID years (across the pandemic timeframe), roughly identical to the pre-crisis period. On the other hand, the typical family in the top income bracket saw their liquid savings rise by £4,200," the study reveals.