What matters is what the average standard of living is. Do you own a car? A house? Indoor plumbing? Hot water? Clean water? A refrigerator? Internet access? Etc.
What does not matter much at all is income disparity, if everyone is doing relatively well.
And in most Socialist nations you still have an elite who run the thing and have vastly more prosperity, meaning income inequality remains high, with the major and significant difference that it cannot be corrected. The peons cannot rise, because in an anti-meritocracy (which might be a useful synonym for “egalitarian”) no amount of work or talent is sufficient to improve your lot. Kissing asses is the only way to get ahead.
And since such Kleptocrats are members of the government and not “Capitalists”, their being more equal than the rest is easy for them to justify to themselves.