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Per new research, the typical employee in the UK would have to work 52 years' worth of salary to reach the financial standing of the most affluent 10% of the population.

Widening Financial Divide Over Time

The study analyzed net worth data covering the recent health crisis years and determined that in the mid-2000s, it would have required nearly four decades of median full-time earnings to reach the wealthiest decile of the wealth distribution.

An economic expert associated with the study commented: "Wealth gaps in Britain are now so large that a typical full-time employee accumulating their complete salary across their entire working life would continue to be incapable to achieve the peak of the financial hierarchy."

Assessing the Economic Gap

The study found that the disparity between the net worth of the average person and an individual in the richest segment was £1m in 2006-08, but had widened to £1.3 million in actual value by recent times.

The economist continued: "These gaps are particularly worrying as wealth mobility in Britain is limited – those who commence life affluent tend to remain affluent, and the opposite holds true."

Relative Wealth Inequality

Despite the economic divide growing in specific figures, the portion of complete net worth in the UK possessed by the most affluent homes – termed "proportional economic disparity" – has been "broadly stable since the 1980s," according to the analysis.

Over this timeframe, total wealth in the UK surged from three times the annual GDP, to nearly seven and a half times.

Contributors of Economic Disparity

Referred to as "unearned" gains, via increasing property values and adjustments to superannuation evaluations, were the main drivers of the expanding economic divide since 2010, per the study.

These appreciations generally flowed to older, property-owning households, the study demonstrates – worsening the age-based economic gap.

Intergenerational Financial Divides

The median economic difference between thirty-somethings and those in their early 60s increased over twofold in real terms, from £135,000 in pre-financial crisis, to £310k.

Regional Differences

Additionally, there were significant geographic differences, with the typical amount of assets in recent years standing at £290k in south-east England, where housing costs have generally grown substantially, versus £110k in the northeastern region.

Pandemic Period Effects

During the pandemic, when millions of workers were supported by the government-supported job retention program, and health crisis restrictions reduced expenditure possibilities, the data shows many households were in a position to set aside money, increasing their wealth.

Wealthier families achieved superior outcomes, though. "The typical family in the bottom income bracket saw their available funds increase by just £80 over the pandemic period (2019-20 to 2021-22), approximately equivalent to the 24 months before COVID. On the other hand, the average household in the top income bracket saw their liquid savings rise by £4,200," the report finds.