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Per fresh study, the typical worker in the UK would need 52 years' worth of salary to achieve the financial standing of the richest 10% of the population.

Widening Wealth Gap Across Decades

This research reviewed financial assets data including the recent health crisis years and found that back in the pre-financial crisis era, it would have needed 38 years' worth of median full-time earnings to enter the top 10th of the wealth distribution.

A research lead part of the analysis stated: "Financial divides 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 reach the top of the financial hierarchy."

Quantifying the Economic Gap

The analysis found that the disparity between the assets of the median citizen and a person belonging to the richest segment was £1m in the pre-crisis period, 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 low – people that start life well-off tend to continue being rich, and the opposite holds true."

Proportional Economic Disparity

Despite the wealth gap widening in absolute terms, the portion of overall assets in the UK possessed by the wealthiest families – called "proportional economic disparity" – has been "mostly consistent since the 1980s," per the analysis.

Throughout these years, overall assets in the UK increased dramatically from thrice the annual GDP, to nearly seven and a half times.

Drivers of Wealth Inequality

Referred to as "passive" increases, through growing real estate costs and changes in retirement fund assessments, were the main drivers of the expanding economic divide from 2010 onward, per the analysis.

These gains tended to accrue to older, property-owning households, the research shows – intensifying the age-based economic gap.

Age-Based Wealth Disparities

The average wealth gap between thirty-somethings and sixty-somethings grew by more than 100% in actual value, from £135,000 in 2006-08, to £310k.

Area-Based Variations

Additionally, there were pronounced geographic differences, with the typical amount of assets in the pandemic period standing at £290,000 in south-east England, where real estate values have tended to rise rapidly, as opposed to 110 thousand pounds in the NE of England.

Pandemic Period Consequences

Amid the health crisis, when numerous employees were protected by the taxpayer-backed furlough scheme, and pandemic lockdowns reduced expenditure possibilities, the data shows many households were in a position to set aside money, increasing their wealth.

Wealthier families performed significantly better, though. "The average household in the bottom income bracket saw their available funds rise by merely £80 throughout the health crisis (2019-20 to 2021-22), broadly the same as the pre-crisis period. In contrast, the median home in the top income bracket saw their available funds increase by £4,200," the study reveals.