Per new analysis, the typical worker in the UK would have to work half a century of income to attain the financial standing of the richest 10% of the population.
Widening Wealth Gap Across Decades
The study reviewed net worth statistics covering the 2020-22 timeframe and found that in the mid-2000s, it would have taken nearly four decades of average worker salary to reach the richest segment of the economic ladder.
An economic expert associated with the study commented: "Wealth gaps in Britain are presently so substantial that a average worker accumulating their complete salary throughout their career would remain unable to reach the top of the financial hierarchy."
Measuring the Wealth Divide
The analysis found that the gap between the wealth of the average person and someone in the top 10% was £1 million in the mid-2000s, but had expanded to 1.3 million pounds in inflation-adjusted terms by 2020-22.
The economist added: "These gaps are especially alarming as wealth mobility in Britain is restricted – those who commence life affluent tend to stay wealthy, and vice versa."
Proportional Economic Disparity
Despite the financial disparity growing in absolute terms, the portion of complete net worth in the UK held by the wealthiest families – known as "comparative financial divide" – has been "largely unchanged since the eighties," according to the study.
Over this timeframe, overall assets in the UK rose substantially from triple the annual GDP, to almost 7.5 times.
Contributors of Financial Divide
So-called "unearned" gains, through growing real estate costs and changes in pension valuations, were the primary factors of the widening wealth gap since 2010, according to the report.
These increases generally flowed to senior citizens with real estate, the analysis reveals – intensifying the intergenerational wealth divide.
Generational Wealth Disparities
The average wealth gap between thirty-somethings and people aged 60-64 more than doubled in actual value, from £135,000 in 2006-08, to £310,000.
Area-Based Differences
There were also significant regional variations, with the average level of wealth in 2020-22 standing at £290,000 in the southeastern region, where housing costs have generally grown substantially, versus £110k in the NE of England.
Health Crisis Years Consequences
During the pandemic, when millions of workers were covered under the public-funded employment protection, and pandemic lockdowns reduced expenditure possibilities, the statistics indicate numerous families were able to save, growing their net worth.
Wealthier families performed significantly better, nevertheless. "The average household in the bottom income bracket saw their available funds increase by just £80 during the COVID years (2019-20 to 2021-22), approximately equivalent to the pre-crisis period. On the other hand, the average household in the top income bracket saw their cash reserves grow by 4,200 pounds," the study reveals.
