Average UK worker would need to save 52 years of earnings to be wealthy
Near impossible to work your way to riches, report reveals
- The average UK worker would need to save for 52 years without any outgoings to accumulate the £1.3 million required to enter the wealthiest bracket.
- Research by the Resolution Foundation highlights a worsening of intergenerational inequality, leading to significant wealth gaps where parental background increasingly influences lifetime living standards.
- Despite Britain's overall wealth reaching a record high of 7.5 times GDP, the disparity between rich and poor families has grown sharply, with low wealth mobility across the country.
- Factors such as age, existing wealth, and location significantly impact an individual's financial standing, with passive earnings like rising house prices contributing to over half of household income growth since the early 2010s.
- Discussions about a potential wealth tax to address a £50bn deficit raise concerns that such a tax might disproportionately affect pensioners or homeowners rather than solely targeting the super-rich.