The wealthiest 10% of households in Britain have the majority of their assets made up of net property wealth and private pension wealth, figures from the Office for National Statistics (ONS) have shown.

It found that, for the richest 10% of households, 38% of their wealth was through property and 36% was in private pensions, as at the end of March 2022.

During the data period of April 2020 to March 2022, the wealthiest 1% of households held 10% of all household wealth in Britain, which was the same proportion held by the least wealthy 50% of households combined.

The wealthiest 1% had assets of at least £3,121,500, while the top 10% had wealth of £1,200,500 or more.

The least wealthy 10% of households had £16,500 or less, with almost all of this being made up of physical wealth.

Median household wealth in Britain was £293,700, with this figure varying by region. The largest difference was seen between the south east (£489,800) and the north east (£179,900).

The wealthiest households tended to be those where the household head was around state pension age, retired, and/or owned their property outright.

Commenting on the ONS figures, retirement savings director at Standard Life, Mike Ambery, said: "The latest figures from the ONS report reveal that property and pension are the twin pillars of household wealth in the UK but also point to significant generational divides.

"The data shows that household wealth is heavily weighted towards the over 50s, with those with a household head between 65-75 years old seeing a 12% growth in their median household financial wealth, from April 2020 – March 2022.

"Older groups have benefited from property price growth and access to generous defined benefit (DB) pension schemes. As a result, many over-65s enjoy a stronger financial position, with greater security in their later years. Indeed, it was retired people rather than workers who saw the biggest increase in household wealth over the period.

"For those in their 40s and below the picture is markedly different, as DB pensions are increasingly rare, with more reliance on defined contribution pension pots where the onus is on the individual to make sufficient savings.

"With property prices rising steadily over the years and pensions continuing to provide significant long-term financial security, this data shows that these assets are critical to maintaining financial stability."

Senior consultant at Broadstone, Winston Ruddick, added: "Inequal distribution of wealth across the country is the main takeaway of the latest wealth and assets survey which clearly illustrates a divide between the ‘haves’ and the ‘have-nots’.

"While the top decile are millionaires in terms of their overall wealth, the least wealthy 10% have less than £20,000 which not only leaves them financially insecure in the short term but paints a bleak picture in terms of their longer-term prospects looking ahead to retirement.

"Property accounts for the highest proportion of household wealth and is evidently the key dividing line as demonstrated by the wealth chasm between the south east and the north east with a median gap in household wealth of £309,900.

"Owning your own home continues to act as a proxy for financial security and wealth appreciation with those who own outright seeing their median financial wealth grow by £4,300 in the two years to 2020-2022 compared to just a £400 bump for renters."

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