Is the middle class disappearing in the US?

Yes, the U.S. middle class has been steadily shrinking for decades, falling from 61% of adults in 1971 to around 50% by 2021-2023, with many moving into upper-income brackets, while a growing lower-income tier also contributes to the decline in the middle's share, driven by rising inequality, technological shifts, globalization, and stagnant wage growth for many.

Is the middle class gone in America?

America's Middle Class Has Not Been Hollowed Out. Far from It. Americans' income growth has been strong for decades — and not just for the rich. This article appeared in MarketWatch on October 14, 2025.

Are you middle class if you make $100,000 a year?

According to Pew Research Center, for a three-person household the “middle-income” range in 2022 dollars was about $56,600 to $169,800. A household earning $100,000 places you squarely in the middle-income range under that definition — you're not lower-income, but neither are you upper class.

What salary is considered middle class?

A middle-class salary varies significantly by location and household size, but generally, it's defined as two-thirds to double the median household income for your area, according to Pew Research Center and SmartAsset.com. Nationally, this might mean roughly $51,000 to $155,000 (in 2023/2024 dollars) for a typical household, but in expensive cities like San Jose, CA, the range can be $90,000 to over $270,000, while in lower-cost states like Mississippi, it's closer to $36,000 to $108,000. 

What percent of Americans make over $150,000 a year?

Over one quarter, 28.5%, of all income was earned by the top 8%, those households earning more than $150,000 a year. The top 3.65%, with incomes over $200,000, earned 17.5%. Households with annual incomes from $50,000 to $75,000, 18.2% of households, earned 16.5% of all income.

Why The Middle-Class Is Disappearing

What is considered wealthy in the US?

Wealth in the U.S. is perceived differently, but recent surveys suggest Americans think you need about a $2.3 million net worth to be considered wealthy, while roughly $839,000 makes one feel financially comfortable, with these figures varying significantly by age and location, influenced heavily by inflation. Official measures vary, but the top 1% of earners often start in the high six figures or low millions in income, while top net worths reach into the millions or tens of millions. 

How rare is a 150K salary?

A $150k salary is relatively rare but not elite, placing you in the top 10-12% of U.S. earners, well above median income, yet it can feel middle-class in high-cost areas due to inflation and housing costs. While significant, it's not "rich" (top 1% needs ~$785k+) but puts you in the upper-middle-class bracket in most locations, with the actual feel depending heavily on your state and living expenses. 

What are the 5 income classes?

The five common income classes, from lowest to highest, are generally defined as Lower Class, Lower-Middle Class, Middle Class, Upper-Middle Class, and Upper Class, with definitions often based on income relative to the national median, though specific brackets vary by source (like Pew Research or U.S. News and The Motley Fool). These classifications help gauge economic standing, with the middle class typically spanning two-thirds to double the median income, adjusted for household size and location. 

How much does the average middle class person have in savings?

The average middle-class person's savings vary, but recent data shows the median bank account balance is around $8,000, while the average (mean) is much higher at about $25,000-$44,000 for middle-income brackets, reflecting a wide range of savings, with many having less than $1,000 and some having significant retirement funds. For example, households earning $60k-$90k have a median of $7,400 in bank accounts, but higher income groups (>$90k) have significantly more, with medians over $15,000, showing how income impacts savings. 

What are the signs you are middle class?

Here are some signs you have landed yourself squarely in the middle class.

• The Majority of Your Net Worth Is Attributed to Your Home. ...
• You're Not Renting. ...
• You Have an Emergency Fund. ...
• You Have an Investment Strategy. ...
• You Have the Confidence To Quit. ...
• Debt Isn't a Stressor. ...
• You Can Afford College Education for Your Kids.

Can I afford a 500K house on 100k salary?

You might be able to afford a $500k house on a $100k salary, but it will be tight and depends heavily on your existing debts, credit, down payment, and location; the general guideline (28/36 rule) suggests your total housing costs (PITI) should be around $2,300/month, while some scenarios show you'd need closer to $117k-$140k income or have very little left after housing, taxes, and insurance. 

How rare is 100k a year?

Making $100k a year is less common for individuals but more so for households; roughly 18-23% of individual U.S. workers earn over $100k, while about 34% of households hit that mark, making it a significant income but not universally "rich" due to high living costs in many areas, with factors like location, gender, and age impacting its value and attainment. 

Is a 6 figure salary good anymore?

A six-figure salary ($100,000+) is still good and above average, but inflation and high living costs mean it often doesn't provide the financial freedom it once did, with many still living paycheck-to-paycheck, especially in expensive areas, making it feel more like a baseline for survival than wealth in 2025-2026. While it's a milestone, it requires smart budgeting to cover soaring costs for housing, childcare, and daily expenses, with some suggesting $165,000+ is the new benchmark for comfort due to rising prices. 

What is causing the decline of America?

Shrinking military advantages, deficit spending, geopolitical overreach, and a shift in moral, social, and behavioral conditions have been associated with American decline.

What is the biggest problem of middle class?

But if you're middle class, you're expected to figure everything out on your own. You don't qualify for subsidies, yet you can't afford luxuries without stretching yourself thin. You pay full price for everything – education, healthcare, rent, fuel – without any financial relief.

When did the middle class start shrinking?

The shrinking of the American middle class began around the mid-to-late 1970s and intensified in the 1980s, as rising inequality led to more movement up to higher-income brackets, followed by a more concerning stagnation and decline in middle-class incomes and wealth after the 2000s. While the middle-class share of the population decreased, initially, many moved up in income; however, since 2000, the trend has become more alarming, with falling middle-class incomes and substantial wealth loss, especially after recessions. 

Can I retire at 62 with $400,000 in 401k?

You can retire at 62 with $400k if you can live off $30,200 annually, not including Social Security Benefits, which you are eligible for now or later.

What is the $27.40 rule?

The $27.40 Rule is a personal finance strategy to save $10,000 in one year by consistently setting aside $27.40 every single day ($27.40 x 365 days = $10,001). It's a simple way to reach a large financial goal by breaking it down into small, manageable daily habits, making saving feel less intimidating and more achievable by cutting small, unnecessary expenses like daily coffees or lunches.
 

How many Americans have $1,000,000 in retirement savings?

Only a small fraction of Americans, roughly 2.5% to 4.7%, have $1 million or more in retirement savings, with the percentage rising slightly to around 3.2% among actual retirees, according to recent Federal Reserve data analyses. A higher percentage, about 9.2%, of those nearing retirement (ages 55-64) have reached this milestone, though the majority of households have significantly less saved. 

What is a poor class income?

"Poor class" income varies, but generally refers to the bottom 20% of earners, often below $30,000-$38,000 annually, with official poverty levels set by the government (e.g., around $32,150 for a family of four in 2025) and differing by cost of living and household size, representing incomes where basic needs are difficult to meet, notes the U.S. government HealthCare.gov website. 

What is considered rich today?

Being considered rich today generally requires a significant net worth, with Americans citing an average of $2.3 million to feel truly wealthy, influenced heavily by inflation and the rising cost of living, though this varies greatly by location, age, and lifestyle, with financial comfort starting around $839,000 net worth. It's not just about accumulation but also about financial security and confidence in managing money, encompassing income, assets, debt, and lifestyle. 

How much money do Americans need to be comfortable?

Nearly half, or 45%, of all adults said they would need to make $100,000 or more a year to feel financially secure, Bankrate's financial freedom survey found. Roughly one-quarter, or 26%, said they need to make $150,000 or more. Fewer — 16% — put the bar at over $200,000.

Can a family of four live on 150k a year?

I wouldn't be surprised if $150k was really tight for a family of 4 in SF proper. Running the calculations, a payroll calculator indicates that $150k/yr turns into $3925 take home every 2 weeks or just over $100k/yr. The housing alone for a three bedroom (assuming everyone shares a room) would run at least $60k/yr.

What is the top 1 income in the world?

To be in the global top 1% by income, you generally need to earn well into the six figures, with some sources suggesting over $34,000 USD puts you there, while for wealth, thresholds are much higher (over $1 million+), with countries like Monaco and Switzerland having the highest entry points, showing a huge disparity between national averages and global standards. The exact income threshold varies greatly by country and data source, but it's significantly lower in developing nations compared to the U.S. or Europe.
 

What is considered a good salary for a family?

The national median household income is $80,610 according to the most recent Census data. But in the largest U.S. cities, a single adult needs at least $85,000 to sustain a comfortable lifestyle while a family of four requires nearly $200,000.