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According to new research, the average employee in the UK would have to work half a century of salary to reach the net worth of the wealthiest 10% of the population.

Expanding Wealth Gap Through the Years

The analysis examined net worth information including the recent health crisis years and determined that back in 2006-08, it would have required 38 years of average worker salary to enter the richest segment of the wealth distribution.

A senior economist part of the analysis stated: "Financial divides in Britain are presently so substantial that a typical full-time employee setting aside their entire income during their working years would continue to be incapable to reach the top of the economic scale."

Measuring the Economic Gap

The analysis revealed that the difference between the wealth of the typical individual and a person belonging to the top 10% was £1m in 2006-08, but had widened to 1.3 million pounds in real terms by the pandemic years.

The economist continued: "These disparities are doubly concerning as wealth mobility in Britain is limited – people that start life wealthy tend to continue being rich, and conversely applies."

Relative Wealth Inequality

Despite the economic divide widening in absolute terms, the portion of complete net worth in the UK owned by the most affluent homes – termed "relative wealth inequality" – has been "mostly consistent since the 1980s era," according to the analysis.

Over this timeframe, total wealth in the UK increased dramatically from three times the annual GDP, to almost 7.5 times.

Factors of Financial Divide

Termed "unearned" increases, through increasing property values and variations in retirement fund assessments, were the main drivers of the growing financial disparity since 2010, per the report.

These increases generally flowed to elderly homeowners, the analysis reveals – intensifying the intergenerational wealth divide.

Generational Wealth Disparities

The median economic difference between thirty-somethings and people aged 60-64 increased over twofold in actual value, from 135 thousand pounds in 2006-08, to £310,000.

Regional Disparities

There were also stark area-based disparities, with the typical amount of net worth in 2020-22 reaching £290,000 in south-east England, where real estate values have typically increased quickly, as opposed to £110,000 in the north-east.

Pandemic Period Consequences

Throughout the COVID period, when numerous employees were supported by the public-funded employment protection, and health crisis restrictions reduced expenditure possibilities, the information reveals many households were able to save, increasing their wealth.

Wealthier families achieved superior outcomes, however. "The median home in the poorest fifth saw their available funds increase by just £80 over the pandemic period (2019-20 to 2021-22), approximately equivalent to the pre-crisis period. On the other hand, the median home in the top income bracket saw their available funds grow by 4,200 pounds," the analysis concludes.