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Based on fresh research, the average worker in the UK would require 52 years' worth of income to achieve the net worth of the richest 10% nationwide.

Widening Wealth Gap Across Decades

This research examined wealth distribution data covering the recent health crisis years and discovered that back in the pre-financial crisis era, it would have needed 38 years' worth of average worker salary to join the top 10th of the economic ladder.

A research lead associated with the analysis commented: "Economic disparities in Britain are presently so substantial that a typical full-time employee setting aside their entire income across their entire working life would remain unable to reach the top of the wealth ladder."

Quantifying the Financial Disparity

The study found that the gap between the net worth of the typical individual and an individual in the richest segment was one million pounds in the mid-2000s, but had increased to £1.3m in real terms by 2020-22.

The economist added: "These gaps are especially alarming as economic movement in Britain is limited – individuals who begin life affluent tend to stay wealthy, and vice versa."

Relative Wealth Inequality

Although the wealth gap widening in actual numbers, the portion of complete net worth in the UK possessed by the richest households – termed "proportional economic disparity" – has been "broadly stable since the 1980s," per the research.

Over this timeframe, complete net worth in the UK surged from triple the annual GDP, to approximately 7.5x.

Drivers of Economic Disparity

So-called "automatic" increases, via rising house prices and changes in retirement fund assessments, were the main drivers of the expanding economic divide since 2010, per the study.

These gains tended to accrue to older, property-owning households, the analysis reveals – exacerbating the age-based economic gap.

Age-Based Wealth Disparities

The typical financial disparity between individuals aged 30-34 and sixty-somethings more than doubled in real terms, from £135,000 in the mid-2000s, to £310,000.

Regional Disparities

Additionally, there were pronounced area-based disparities, with the median value of wealth in recent years reaching £290k in the southeastern region, where real estate values have typically increased quickly, compared with 110 thousand pounds in the NE of England.

Health Crisis Years Effects

During the pandemic, when numerous employees were protected by the government-supported job retention program, and health crisis restrictions reduced expenditure possibilities, the data shows countless homes were capable of accumulating, growing their net worth.

Wealthier families performed significantly better, though. "The median home in the poorest fifth saw their available funds increase by just £80 during the COVID years (across the pandemic timeframe), approximately equivalent to the 24 months before COVID. On the other hand, the median home in the highest income quintile saw their available funds rise by £4,200," the analysis concludes.