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Based on new research, the typical worker in the UK would have to work 52 years' worth of earnings to attain the financial standing of the most affluent 10% in the country.

Widening Wealth Gap Across Decades

This research reviewed wealth distribution information from the recent health crisis years and found that in the mid-2000s, it would have taken 38 years of average worker salary to join the top 10th of the economic ladder.

A research lead part of the analysis stated: "Wealth gaps in Britain are presently so substantial that a average worker setting aside their entire income across their entire working life would remain unable to attain the highest level of the wealth ladder."

Quantifying the Financial Disparity

The analysis found that the disparity between the wealth of the average person and a person belonging to the richest segment was £1 million in 2006-08, but had expanded to 1.3 million pounds in inflation-adjusted terms by 2020-22.

The analyst further stated: "These disparities are especially alarming as wealth mobility in Britain is limited – people that start life well-off tend to continue being rich, and conversely applies."

Comparative Financial Divide

Despite the wealth gap widening in specific figures, the portion of total wealth in the UK possessed by the wealthiest families – termed "comparative financial divide" – has been "largely unchanged since the 1980s era," according to the analysis.

Over this timeframe, overall assets in the UK rose substantially from three times the annual GDP, to almost 7.5 times.

Factors of Financial Divide

Referred to as "automatic" increases, by means of increasing property values and adjustments to retirement fund assessments, were the primary factors of the growing financial disparity since 2010, according to the analysis.

These gains generally flowed to older, property-owning households, the analysis reveals – worsening the age-based economic gap.

Age-Based Economic Gaps

The typical financial disparity between people in their early 30s and sixty-somethings grew by more than 100% in actual value, from £135,000 in pre-financial crisis, to £310k.

Geographic Variations

There were also significant area-based disparities, with the median value of net worth in recent years standing at 290 thousand pounds in the southeastern region, where property prices have typically increased quickly, as opposed to £110k in the north-east.

Pandemic Period Impact

Throughout the COVID period, when numerous employees were supported by the government-supported job retention program, and health crisis restrictions reduced expenditure possibilities, the data shows many households were in a position to set aside money, increasing their wealth.

Wealthier families fared much better, though. "The median home in the poorest fifth saw their liquid savings increase by just £80 over the pandemic period (across the pandemic timeframe), approximately equivalent to the 24 months before COVID. On the other hand, the median home in the wealthiest fifth saw their available funds increase by £4,200," the analysis concludes.