"The Resolution Foundation this week found that a typical full-time employee would have to set aside 52 years' worth of income to join Britain's wealthiest 10%, compared with 38 years in the late 2000s. The report highlights that household wealth has become increasingly concentrated among those who already hold property and pensions - assets that have surged in value over the past decade."
"This confirms what we've long been saying: saving is not enough. Wages have stagnated in real terms while asset prices have accelerated. It now takes decades of disciplined saving just to reach where capital growth could take you in a few good investment cycles. The gap between savers and investors is no longer narrow, it's generational."
"You can't save your way into wealth anymore. The financial system rewards ownership of assets, not accumulation of cash. Inflation and rising living costs mean money left idle in savings is effectively shrinking. The only way to build genuine, lasting wealth is through investing, where compounding works for you, not against you."
A typical full-time UK employee would need to set aside 52 years' worth of income to reach the wealth of the top 10%, up from 38 years in the late 2000s. Household wealth has become increasingly concentrated among property owners and those with pension pots, whose values rose sharply over the past decade. Real wages have largely stagnated while asset prices have accelerated. Inflation and rising living costs erode idle cash savings. Decades of disciplined saving are often insufficient compared with capital growth from investments. Asset ownership and investing, where compounding works in one's favor, are the primary routes to lasting wealth. The wealth gap between people in their early 30s and early 60s has doubled since the financial crisis.
Read at London Business News | Londonlovesbusiness.com
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