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According to new analysis, the median employee in the UK would have to work half a century of earnings to reach the net worth of the richest 10% nationwide.

Expanding Financial Divide Through the Years

The analysis examined net worth statistics from the Covid pandemic period and found that in 2006-08, it would have needed 38 years' worth of typical employment income to reach the top 10th of the economic ladder.

A research lead involved with the study commented: "Economic disparities in Britain are now so large that a average worker setting aside their entire income throughout their career would continue to be incapable to achieve the peak of the economic scale."

Measuring the Economic Gap

The analysis found that the disparity between the net worth of the typical individual and someone in the wealthiest decile was one million pounds in 2006-08, but had expanded to 1.3 million pounds in actual value by 2020-22.

The researcher added: "These gaps are particularly worrying as financial progression in Britain is low – those who commence life wealthy tend to stay wealthy, and the opposite holds true."

Relative Wealth Inequality

Although the economic divide growing in specific figures, the percentage of total wealth in the UK held by the most affluent homes – called "comparative financial divide" – has been "largely unchanged since the 1980s era," per the research.

During this period, overall assets in the UK surged from three times the gross domestic product, to nearly seven and a half times.

Factors of Wealth Inequality

Referred to as "unearned" gains, through increasing property values and changes in retirement fund assessments, were the main drivers of the expanding economic divide since 2010, as stated in the report.

These gains typically went to senior citizens with real estate, the research shows – exacerbating the intergenerational wealth divide.

Age-Based Wealth Disparities

The median economic difference between individuals aged 30-34 and those in their early 60s increased over twofold in inflation-adjusted terms, from £135k in 2006-08, to £310,000.

Regional Variations

Additionally, there were stark regional variations, with the average level of wealth in the pandemic period reaching 290 thousand pounds in the SE of England, where housing costs have tended to rise rapidly, compared with £110k in the northeastern region.

Health Crisis Years Consequences

Amid the health crisis, when millions of workers were supported by the public-funded employment protection, and health crisis restrictions curtailed consumption options, the data shows numerous families were in a position to set aside money, increasing their wealth.

Higher-income households performed significantly better, though. "The average household in the lowest-income quintile saw their liquid savings rise by merely £80 during the COVID years (from 2019 to 2022), approximately equivalent to the pre-crisis period. In contrast, the median home in the wealthiest fifth saw their cash reserves rise by £4,200," the study reveals.