The average UK worker would need to save all their earnings for 52 years to match the wealth of the richest 10% of society, according to research by the Resolution Foundation. The thinktank's analysis of Office for National Statistics data from 2020-22 reveals that the wealth gap has widened significantly since the 2008 financial crisis.
Before the crisis, in 2006-08, it would have taken 38 years of median full-time earnings to reach the top 10% of the wealth distribution. By 2020-22, that figure had risen to 52 years, highlighting a growing chasm between typical workers and the wealthiest.
"Wealth gaps in Britain are now so large that a typical full-time employee saving all their earnings across their entire working life would still not be able to reach the top of the wealth ladder," said Molly Broome, senior economist and lead author of the report.
The absolute gap between the wealth of the average person and someone in the top 10% increased from £1 million in 2006-08 to £1.3 million in real terms by 2020-22. Despite this, the share of total wealth held by the richest households has remained broadly stable since the 1980s, as total UK wealth surged from three times GDP to almost 7.5 times.
"Passive" gains from rising house prices and pension valuations have been key drivers of the widening gap since 2010, according to the report. These gains have disproportionately benefited older, property-owning households, worsening the intergenerational divide: the average wealth gap between people in their early 30s and early 60s more than doubled in real terms from £135,000 to £310,000 over the same period.
Regional disparities are stark, with average wealth in south-east England at £290,000 compared with £110,000 in the north-east in 2020-22. During the pandemic, higher-income households saw their liquid savings increase by £4,200, while those in the lowest-income quintile added just £80.
