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Experts urge savers to do one thing as figures show it takes worker 50 years to reach wealth of top 10%

ended 09. October 2025

EXPERTS have urged savers to do one thing after research reveals that the average UK worker would need to save more than 50 years of pay to reach the wealth of the top 10%.

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.

Financial experts have urged Brits to do one thing – invest rather than save.

Antonia Medlicott, Founder & MD at Stonehouse-based Investing Insiders, said: "Those looking to build their wealth over the long-term should be mindful that, historically, investing has proved to be a far more effective strategy than keeping money in savings accounts. 

"If you’d had your money invested in the S&P 500 index over the past 5 years, you’d have seen annual average growth of around 15-18%. Contrast that with UK savings accounts which, over the same period, have offered average interest rates as low as 0.5% in 2021. 

"Even last year, when inflation was sending prices on the shelves soaring, savers were probably still only getting around 3.86% back. As the report points out, major life events such as receiving an inheritance, can give people an opportunity to narrow the wealth gap. So it’s vital people grasp those opportunities and look at what is likely to present the best opportunities for growth."

Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial, shared how you can better build wealth.

She added: "This report reflects what many people are feeling - saving does not make you wealthy. With inflation eating into cash and property and pensions driving most of the wealth gap, those relying on savings accounts are effectively standing still. 

"Building wealth now means putting your money to work. That starts with investing regularly, even small amounts, into diversified funds that grow over time. 

“Pensions remain one of the best tools thanks to tax relief and employer contributions, while ISAs add flexibility. But it’s not just strategy, you also need to work on your relationship with money, so you feel safe growing and holding on to the wealth you’ve earned.”

Colette Mason, Author & AI Systems Architect at London-based Clever Clogs AI, said AI could hold the answer.

She said: "Saving isn’t the issue. Stability is. And we’re dismantling that faster than most people realise. Being good with money used to be enough. Now it just makes you a well-organised serf. Wealth creation is now tied to capital and control of technology, not labour or savings. This isn’t innovation. It’s extraction, concentrating assets, data and power in the hands of the few, while the rest are left reacting to outcomes they didn’t choose and can’t change. The wealth gap won’t close with budgeting apps. It widens every time a human is designed out of the job market."

Omer Mehmet, Managing Director at Welling-based Trinity Finance, said savers need to turn into investors.

He said: "Saving alone won’t make you wealthy anymore — not in an economy where inflation outpaces interest and asset growth does the heavy lifting. The report proves that real wealth now comes from ownership, not income. 

"Property, pensions and investments are what move the dial, but too many people are locked out of those opportunities. The focus shouldn’t just be on saving harder, it should be on helping ordinary workers invest smarter — turning savers into owners."

Ross Lacey, Director & Independent Financial Adviser at Rayleigh-based Fairview Financial Management, agreed, adding: "The UK has a saving culture, rather than an investing culture like that seen in the US and Europe. For too long, there's not been enough of a reality check for the real risks of saving money and keeping it sitting in cash. 

"As the cost of living rises year on year, money saved for the future needs to keep its buying power. We're now starting to see risk warnings given to leaving money in cash, with the same prominence that we see for investments. Investing can mean sticking all your money into one company's shares or spreading across 1,000s so it's important to differentiate. 

“Our advice is to consider what you need and want in the future, and then how you could realistically bridge the gap between what you have currently to put towards this. Making use of an intelligent investment strategy and structuring things properly can help increase your chances of successfully getting where you need to.”

Michelle Lawson, Director at Fareham-based Lawson Financial, said people are struggling to get by.

She added: "This isn't just about saving to get rich, circa 39% of people have less than £1,000 available month to month according to Finder.com with 16% (approx 8.4m people) having nothing at all to fall back on. 

"Income has risen as have outgoings so the middle is squeezed and people are just getting by. That said, people do find the money for the things they want to and with the Governments' ever changing of retirement goal posts this will affect the ability to plan or save. 

“People are finding alternative routes via sidelines, other jobs, investments but these are also all being hit with taxation so saving and personal finance growth becomes impossible for a significant number.”

Eamonn Prendergast, Chartered Financial Adviser at Bromley-based Palantir Financial Planning Ltd, said people need to be smarter.

He continued: "The gap between rich and poor households is no longer just about income, it’s about ownership. The Resolution Foundation’s Before the Fall report shows that wealth has surged for those with property, pensions, and investments, while ordinary savers have stood still. 

"Those relying on cash are falling behind because inflation quietly erodes its value, while asset holders benefit from compounding growth and rising markets. To bridge the gap, financial education and access to investment need to be widened, encouraging people to use ISAs, pensions, and diversified portfolios rather than leaving money idle in savings accounts. Building wealth today isn’t about saving harder, it’s about saving smarter."

9 responses from the Newspage community

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Editor
Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
This report reflects what many people are feeling - saving does not make you wealthy. With inflation eating into cash and property and pensions driving most of the wealth gap, those relying on savings accounts are effectively standing still.

Building wealth now means putting your money to work. That starts with investing regularly, even small amounts, into diversified funds that grow over time. Pensions remain one of the best tools thanks to tax relief and employer contributions, while ISAs add flexibility. But it’s not just strategy, you also need to work on your relationship with money, so you feel safe growing and holding on to the wealth you’ve earned.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
This isn't just about saving to get rich, circa 39% of people have less than £1000 available month to month according to Finder.com with 16% (approx 8.4m people) having nothing at all to fall back on. Income has risen as have outgoings so the middle is squeezed and people are just getting by. That said, people do find the money for the things they want to and with the Governments' ever changing of retirement goal posts this will affect the ability to plan or save. People are finding alternative routes via sidelines, other jobs, investments but these are also all being hit with taxation so saving and personal finance growth becomes impossible for a significant number.
Copy

Editor
Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This wealth gap is the legacy of years of monetary policy designed to stabilise the economy after the financial crisis. Quantitative easing and persistent government deficits have pumped trillions into financial markets, inflating the value of assets like property and pensions.

Those who already owned assets have seen their wealth surge, while wage growth has lagged far behind. It's created a structural divide, with those left behind facing an insurmountable challenge.
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Editor
Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
The UK has a saving culture, rather than an investing culture like that seen in the US and Europe.

For too long, there's not been enough of a reality check for the real risks of saving money and keeping it sitting in cash. As the cost of living rises year on year, money saved for the future needs to keep its buying power.

We're now starting to see risk warnings given to leaving money in cash, with the same prominence that we see for investments.

Investing can mean sticking all your money into one company's shares or spreading across 1000s so it's important to differentiate.

Our advice is to consider what you need and want in the future, and then how you could realistically bridge the gap between what you have currently to put towards this. Making use of an intelligent investment strategy and structuring things properly can help increase your chances of successfully getting where you need to.
Copy

Editor
Tony Redondo
Founder at Cosmos Currency Exchange
The British need to shift their mindset from saving to investing. The gap widening from 38 to 52 years highlights how wealth accumulation has fundamentally changed—it's less about income and saving discipline, and more about asset ownership and timing. Why keep money in a cash ISA where purchasing power barely keeps pace with inflation, when you can invest in asset classes that historically deliver far superior capital appreciation over the medium to long term? Add a tax wrapper like a Stocks and Shares ISA, and you enhance returns even further. Property, particularly, should remain a strong asset class over time. After all, they're not making any more land.
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Editor
Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
“The gap between rich and poor households is no longer just about income, it’s about ownership. The Resolution Foundation’s Before the Fall report shows that wealth has surged for those with property, pensions, and investments, while ordinary savers have stood still. Those relying on cash are falling behind because inflation quietly erodes its value, while asset holders benefit from compounding growth and rising markets. To bridge the gap, financial education and access to investment need to be widened, encouraging people to use ISAs, pensions, and diversified portfolios rather than leaving money idle in savings accounts. Building wealth today isn’t about saving harder, it’s about saving smarter.”
Copy

Editor
Antonia Medlicott
Founder & MD at Investing Insiders
Those looking to build their wealth over the long-term should be mindful that, historically, investing has proved to be a far more effective strategy than keeping money in savings accounts.

If you’d had your money invested in the S&P 500 index over the past 5 years, you’d have seen annual average growth of around 15-18%. Contrast that with UK savings accounts which, over the same period, have offered average interest rates as low as 0.5% in 2021. Even last year, when inflation was sending prices on the shelves soaring, savers were probably still only getting around 3.86% back.

As the report points out, major life events such as receiving an inheritance, can give people an opportunity to narrow the wealth gap. So it’s vital people grasp those opportunities and look at what is likely to present the best opportunities for growth.
Copy

Colette Mason
AI Ethics Consultant at Clever Clogs AI
Saving isn’t the issue. Stability is. And we’re dismantling that faster than most people realise. Being good with money used to be enough. Now it just makes you a well-organised serf.

Wealth creation is now tied to capital and control of technology, not labour or savings. This isn’t innovation. It’s extraction, concentrating assets, data and power in the hands of the few, while the rest are left reacting to outcomes they didn’t choose and can’t change.

The wealth gap won’t close with budgeting apps. It widens every time a human is designed out of the job market.
Copy

Omer Mehmet
Managing Director at Trinity Finance
Saving alone won’t make you wealthy anymore — not in an economy where inflation outpaces interest and asset growth does the heavy lifting. The report proves that real wealth now comes from ownership, not income. Property, pensions and investments are what move the dial, but too many people are locked out of those opportunities. The focus shouldn’t just be on saving harder, it should be on helping ordinary workers invest smarter — turning savers into owners.