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Based on recent research, the median earner in the UK would have to work 52 years' worth of income to reach the financial standing of the most affluent 10% of the population.

Expanding Economic Disparity Over Time

The study examined financial assets statistics from the 2020-22 timeframe and determined that during the mid-2000s, it would have needed 38 years' worth of typical employment income to join the wealthiest decile of the wealth distribution.

A senior economist involved with the study observed: "Wealth gaps in Britain are presently so substantial that a regular employee setting aside their entire income across their entire working life would still not be able to attain the highest level of the wealth ladder."

Measuring the Wealth Divide

The study found that the difference between the net worth of the average person and an individual in the top 10% was £1m in the mid-2000s, but had expanded to £1.3 million in real terms by the pandemic years.

The analyst continued: "These gaps are particularly worrying as wealth mobility in Britain is low – individuals who begin life wealthy tend to stay wealthy, and the opposite holds true."

Relative Wealth Inequality

Although the financial disparity growing in actual numbers, the portion of total wealth in the UK owned by the most affluent homes – called "relative wealth inequality" – has been "largely unchanged since the 1980s," according to the study.

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

Contributors of Financial Divide

So-called "unearned" appreciation, by means of rising house prices and variations in retirement fund assessments, were the main drivers of the growing financial disparity since 2010, per the analysis.

These increases tended to accrue to elderly homeowners, the research shows – worsening the intergenerational wealth divide.

Age-Based Wealth Disparities

The average wealth gap between individuals aged 30-34 and people aged 60-64 increased over twofold in real terms, from £135k in the mid-2000s, to 310 thousand pounds.

Geographic Differences

Furthermore, the study revealed significant regional variations, with the typical amount of net worth in recent years reaching 290 thousand pounds in south-east England, where property prices have generally grown substantially, versus 110 thousand pounds in the northeastern region.

COVID Era Impact

Amid the health crisis, when millions of workers were protected by the public-funded employment protection, and pandemic lockdowns curtailed consumption options, the information reveals countless homes were in a position to set aside money, increasing their wealth.

Higher-income households performed significantly better, nevertheless. "The average household in the lowest-income quintile saw their liquid savings rise by merely £80 over the pandemic period (2019-20 to 2021-22), broadly the same as the 24 months before COVID. Conversely, the median home in the top income bracket saw their liquid savings increase by £4,200," the study reveals.