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According to new study, the typical worker in the UK would have to work half a century of earnings to reach the wealth level of the richest 10% of the population.

Growing Wealth Gap Across Decades

The analysis examined wealth distribution data including the 2020-22 timeframe and determined that back in the mid-2000s, it would have needed 38 years of average worker salary to join the wealthiest decile of the economic ladder.

A senior economist involved with the report observed: "Wealth gaps in Britain are now so large that a regular employee setting aside their entire income during their working years would still not be able to attain the highest level of the wealth ladder."

Quantifying the Wealth Divide

The study revealed that the gap between the net worth of the median citizen and someone in the top 10% was £1 million in the mid-2000s, but had increased to £1.3m in real terms by recent times.

The researcher continued: "These disparities are particularly worrying as wealth mobility in Britain is limited – those who commence life wealthy tend to stay wealthy, and the opposite holds true."

Comparative Financial Divide

Although the economic divide expanding in actual numbers, the share of complete net worth in the UK held by the wealthiest families – called "proportional economic disparity" – has been "mostly consistent since the 1980s," per the analysis.

Throughout these years, complete net worth in the UK increased dramatically from thrice the gross domestic product, to almost 7.5 times.

Contributors of Wealth Inequality

Termed "passive" gains, through increasing property values and changes in retirement fund assessments, were the primary factors of the growing financial disparity from 2010 onward, according to the study.

These increases generally flowed to senior citizens with real estate, the analysis reveals – intensifying the generational financial disparity.

Age-Based Wealth Disparities

The average wealth gap between thirty-somethings and those in their early 60s more than doubled in inflation-adjusted terms, from £135,000 in 2006-08, to £310k.

Area-Based Disparities

Additionally, there were stark regional variations, with the median value of wealth in recent years standing at £290,000 in the southeastern region, where housing costs have generally grown substantially, versus 110 thousand pounds in the NE of England.

Health Crisis Years Consequences

Throughout the COVID period, when millions of workers were protected by the taxpayer-backed furlough scheme, and health crisis restrictions curtailed consumption options, the data shows countless homes were able to save, increasing their wealth.

More affluent homes performed significantly better, though. "The average household in the bottom income bracket saw their liquid savings increase by just £80 over the pandemic period (from 2019 to 2022), roughly identical to the 24 months before COVID. In contrast, the average household in the highest income quintile saw their cash reserves increase by £4,200," the analysis concludes.