Pension wealth widens rich/poor gap.

The gap between the rich and poor in Britain is getting bigger, with the richest 10% now more than 500 times more well-off than those in the bottom 10%, according to new figures.

In 2008/10 households in the top bracket had total wealth of £4.5 trillion, compared to a total of £8 billion among those in the lowest segment, the Office for National Statistics' Wealth in Great Britain study revealed.

Private pensions were pinpointed as a key factor in growing wealth inequalities, with a small number of people holding higher-value private pensions.

However, more than half (64%) of the population were not paying into a private pension and four in 10 (42%) adults had no private pension savings whatsoever.

The study also showed significant differences in household finances according to region, with families in the South East the most well-off, with average wealth of £562,000, while those in the North East were at the other end of the scale with total wealth of £322,000.

Copyright Press Association 2012