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According to fresh analysis, the average earner in the UK would need half a century of income to achieve the financial standing of the richest 10% of the population.

Expanding Financial Divide Over Time

This research analyzed financial assets statistics covering the Covid pandemic period and determined that back in 2006-08, it would have taken 38 years of average worker salary to join the richest segment of the economic ladder.

A senior economist involved with the analysis observed: "Financial divides in Britain are currently so significant that a regular employee saving all their earnings throughout their career would continue to be incapable to reach the top of the financial hierarchy."

Assessing the Wealth Divide

The study revealed that the difference between the wealth of the typical individual and an individual in the richest segment was £1 million in the pre-crisis period, but had increased to £1.3 million in inflation-adjusted terms by recent times.

The economist added: "These disparities are particularly worrying as financial progression in Britain is low – people that start life affluent tend to stay wealthy, and the opposite holds true."

Proportional Economic Disparity

Despite the economic divide widening in specific figures, the percentage of total wealth in the UK held by the most affluent homes – called "proportional economic disparity" – has been "mostly consistent since the 1980s era," per the study.

During this period, total wealth in the UK surged from thrice the gross domestic product, to approximately 7.5x.

Drivers of Wealth Inequality

Termed "passive" gains, through increasing property values and changes in pension valuations, were the key contributors of the widening wealth gap over the past decade, per the analysis.

These gains generally flowed to senior citizens with real estate, the analysis reveals – exacerbating the intergenerational wealth divide.

Intergenerational Financial Divides

The average wealth gap between people in their early 30s and people aged 60-64 grew by more than 100% in actual value, from £135,000 in 2006-08, to 310 thousand pounds.

Area-Based Disparities

There were also stark area-based disparities, with the median value of net worth in the pandemic period amounting to 290 thousand pounds in the SE of England, where property prices have generally grown substantially, versus £110,000 in the NE of England.

Health Crisis Years Effects

Throughout the COVID period, when millions of workers were covered under the public-funded employment protection, and health crisis restrictions curtailed consumption options, the statistics indicate numerous families were in a position to set aside money, increasing their wealth.

Higher-income households fared much better, though. "The typical family in the lowest-income quintile saw their cash reserves increase by just £80 over the pandemic period (2019-20 to 2021-22), roughly identical to the 24 months before COVID. In contrast, the average household in the top income bracket saw their liquid savings increase by £4,200," the study reveals.