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Based on new research, the average employee in the UK would require half a century of salary to attain the net worth of the wealthiest 10% of the population.

Growing Financial Divide Across Decades

The study examined financial assets information from the Covid pandemic period and found that in the pre-financial crisis era, it would have needed 38 years of average worker salary to enter the wealthiest decile of the wealth distribution.

A research lead involved with the study observed: "Financial divides in Britain are presently so substantial that a average worker accumulating their complete salary during their working years would continue to be incapable to reach the top of the wealth ladder."

Assessing the Wealth Divide

The analysis found that the disparity between the wealth of the typical individual and someone in the top 10% was one million pounds in the mid-2000s, but had widened to £1.3m in real terms by the pandemic years.

The economist further stated: "These disparities are particularly worrying as financial progression in Britain is low – individuals who begin life affluent tend to stay wealthy, and vice versa."

Comparative Financial Divide

Even with the wealth gap growing in actual numbers, the share of complete net worth in the UK held by the richest households – known as "relative wealth inequality" – has been "broadly stable since the eighties," as stated in the analysis.

Over this timeframe, complete net worth in the UK increased dramatically from three times the gross domestic product, to almost 7.5 times.

Factors of Economic Disparity

Referred to as "unearned" gains, through rising house prices and variations in superannuation evaluations, were the primary factors of the growing financial disparity since 2010, per the report.

These gains tended to accrue to senior citizens with real estate, the study demonstrates – worsening the age-based economic gap.

Age-Based Economic Gaps

The average wealth gap between people in their early 30s and those in their early 60s increased over twofold in real terms, from 135 thousand pounds in 2006-08, to £310,000.

Geographic Variations

Furthermore, the study revealed pronounced area-based disparities, with the median value of assets in recent years standing at £290k in the SE of England, where real estate values have generally grown substantially, compared with 110 thousand pounds in the northeastern region.

Pandemic Period Effects

Throughout the COVID period, when numerous employees were supported by the taxpayer-backed furlough scheme, and health crisis restrictions curtailed consumption options, the statistics indicate numerous families were in a position to set aside money, enhancing their financial standing.

Wealthier families performed significantly better, however. "The typical family in the bottom income bracket saw their available funds rise by merely £80 throughout the health crisis (across the pandemic timeframe), approximately equivalent to the pre-crisis period. In contrast, the typical family in the top income bracket saw their cash reserves rise by £4,200," the analysis concludes.