Subscribe for one winner will be randomly chosen every month The rest of the country of course is made up of the “lower class” and “upper class.” 29% of the country falls into the “lower class” with a median income of $25,624 as of 2016. Still, even within the middle class itself, there are different tiers of income - namely, upper vs. lower middle class. Perhaps it’s a European thing. About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping the world. By most any definition I have seen I am firmly in the upper class. The median income of the middle class as of 2016 was $78,442. There are way too many negative connotations with the word upper class. Across income groups, U.S. adults are about equally likely to say there is too much economic inequality. I don’t know anybody in America who uses the term upper class when speaking. personal finance tips & news. And if there is something offensive, I’ll just delete it. Among Democrats, the reverse is true: 93% at upper-income levels say there is too much inequality, compared with 65% of lower-income Democrats. Remember, it’s not so much how much you make, but how much you keep. Somehow we are a lower class to these people even though we have high earnings, degrees and net worth. To say or think you are upper class is a surefire way to a demotion. Incomes are adjusted for household size and scaled to represent a household size of three. Consequently, the median net worth of families fell to $87,800 by 2013, a loss of 40% from the peak in 2007. (Incomes are expressed in 2018 dollars.). Working my way up to that Rich Class airline seat! I would consider myself upper class. No, I’m just kidding. Even among higher-income families, the growth in income has favored those at the top. I was/am predicting that NVIDIA’s components will be used in self driving vehicles. Among Republicans and those who lean toward the GOP, 41% say there is too much inequality in the U.S., compared with 78% of Democrats and Democratic leaners, a Pew Research Center survey conducted in September 2019 found. Notify me of followup comments via e-mail. Trends in income and wealth inequality, Household incomes are growing again after a lengthy period of stagnation, Upper-income households have seen more rapid growth in income in recent decades, Income growth has been most rapid for the top 5% of families, The wealth of American families is currently no higher than its level two decades ago, The wealth divide among upper-income families and middle- and lower-income families is sharp and rising, Income inequality in the U.S has increased since 1980 and is greater than in peer countries, 3. Subscribe to the Financial Samurai newsletter here. For a household of four, the minimum combined income to make the cut is $156,561. Although making a high income is nice, having a high net worth is more important. 3The black-white income gap in the U.S. has persisted over time. In contrast, the net worth of families in lower tiers of wealth decreased by at least 20% from 2007 to 2016. Financial Samurai is now one of the largest independently run personal finance sites with 1 million visitors a month. Your email address will not be published. Ah yes, I remember those! But considering my family size, I don’t even make it to 400% of the federal poverty level. Numbers, Facts and Trends Shaping Your World. I would suggest dropping the “Mass” and simplify to Affluent, this one word says it all. Im pretty sure the term came from the grey poupon R and D team of 1981. It is a subsidiary of The Pew Charitable Trusts. These views also vary by income within the two party coalitions. In the UK, class is not about money. I started out life bottom of the middle class. Unique content containing tips, deals, strategies, and resources that foster better money habits. Therefore, it’s up to you to adjust your household income figure accordingly. Inflation really has a sneaky way of catching up to all of us. If you have a net worth 50% higher than the average American, you can be considered upper class. But upper- (27%) and middle-income Americans (26%) are more likely than those with lower incomes (17%) to say that there is about the right amount of economic inequality. I think there’s too much of an emphasis on income when describing upper class. I think you hit it spot on especially about being kind to others- SO true about people being too busy to help others. The Congressional Budget Office (CBO) offers an alternative estimate of income inequality that accounts for federal taxes and a more comprehensive array of cash transfers and in-kind services than is possible with Current Population Survey data. The OECD’s estimates of the Gini coefficient are for the following years: U.S. – 2017, UK – 2017, Italy – 2016, Japan – 2015, Canada – 2017, Germany – 2016, France – 2016, and India – 2011. The concept of separating the “upper class” designation from income is interesting. Mass affluent is the more accurate term. From 2007 to 2016, the median net worth of the richest 20% increased 13%, to $1.2 million. I like terms that refer to net worth like high net worth or ultra high net worth individual. Numbers, Facts and Trends Shaping Your World, By Juliana Menasce Horowitz, Ruth Igielnik and Rakesh Kochhar. From 1970 to 2018, the median middle-class income increased from $58,100 to $86,600, a gain of 49%.10 This was considerably less than the 64% increase for upper-income households, whose median income increased from $126,100 in 1970 to $207,400 in 2018. 1) Mortgage rates are at all-time lows. It used to be, now the Middle East airlines in particular have caught up and offer a better overall experience business class experience. “As a middle class citizen, you also don’t get taxed as much. Doctors make good money but I would not consider it a guarantee to wealth and upper class status. Lower-income families had only 4% of aggregate wealth in 2016, down from 7% in 1983. I would have expected it to be a lot higher. We also used previously published data points from Pew Research Center surveys and analyses of outside data. Meanwhile, the share held by middle-income families has been cut nearly in half, falling from 32% to 17%. Pew came up with a nifty calculator that allows you to figure out what class you're statistically a member of based on where you live. In these three decades, the median income increased by 41%, to $70,800, at an annual average rate of 1.2%.