How Much You Need To Make To Be Middle Class for Your Generation
Written by
Bob Haegele
Edited by
Levi Leidy
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What does it mean to be “middle-class” for your generation? While we might have a general idea of what that means, it’s much more difficult to put numbers on it. Inflation makes the middle class a moving target, but that is just one piece of this complicated puzzle.
Even agreeing on what income levels make someone middle-class is not easy. For our purposes, the chosen standard is the Pew definition, which is anyone making between two-thirds to double the median income.
But the web of complexity doesn’t stop there. Generational differences also apply, both in terms of how we think about the middle class and also levels of debt. Imagine two people have the same income near the low end of the middle class, but one has significantly more debt. In that case, the heavily indebted person may not be middle-class because much of their income goes toward debt repayments.
As you can see, it’s complicated. And because each generation has different levels of income and debt, the idea of “middle class” may not be quite what we expect. Let’s explore further.
Income
The range of incomes needed to be middle class follows a pattern that is to be expected. It begins low for younger generations, increasing until Gen X, at which point it begins to decline. To find these numbers, we used Census Bureau data and multiplied the median by 66.66% and 200%, as defined by Pew Research. Below, we break down the numbers for each generation.
Gen Z (18-26)
- 66.66% of median income: $45,716
- 200% of median income: $137,149
Millennial (27-42)
- 66.66% of median income: $60,933
- 200% of median income: $182,799
Gen X (43-58)
- 66.66% of median income: $64,163
- 200% of median income: $192,489
Boomers (59-77)
- 66.66% of median income: $45,313
- 200% of median income: $135,939
Silent (77+)
- 66.66% of median income: $34,651
- 200% of median income: $103,952
In general, these numbers follow a pattern we might expect. Younger generations that are just starting their careers earn less; those numbers increase until Gen X, who have the highest levels of income. Boomers earn less, and the silent generation, who are mostly retired, have the lowest income range.
Annual Income Needed To Be Middle Class
The numbers above give us a sense of the range of incomes needed for each generation to be considered middle class. In theory, the 66.66% number represents the lower bound and the 200% number represents the upper bound.
However, one thing this fails to account for is debt repayment. One thing every generation has in common is that someone making 66.66% of the median annual income may fall out of the middle class if they carry the typical amount of debt for their generation.
Also, note that some generations have different levels of debt, which affects the income needed compared to the median numbers. For example, baby boomers and Gen X carry similar levels of debt, which results in a very similar income needed to be middle class.
But compare that to the 66.66% and 200% thresholds for baby boomers and Gen X. On the low end (66.66% level), boomers make about $19,000 less than Gen X. And on the high end (200% level), Gen X makes almost $57,000 more than boomers per year.
Middle Class Isn’t Always What It Seems
What does “middle class” mean to you? We tend to think simply about how much a person or family makes as defining the middle class. But the real picture is not so simple. After all, Pew Research uses a range to define the middle class; in the case of Gen X, the difference between the high end and the low end is more than $100,000.
In addition, levels of debt affect whether someone is considered middle class. Those who are weighed down by significant levels of debt may not earn this distinction. In addition, this particular analysis has not accounted for regional differences in the cost of living.
Hence, what “middle class” means is not nearly as simple as one might assume it would be. There are many nuances to this discussion, and only when we look at the full picture can we begin to see whether someone is in the middle class, or perhaps misses the cut.
Gabrielle Olya contributed to the reporting for this article.
Methodology: For this piece, GOBankingRates applied (1) Pew Research’s generational parameters; and (2) Pew’s “middle class” as making two-thirds to double the median income of a given area. GOBankingRates determined middle-class income range by (3) analyzing the Census Bureau’s 2021 Current Population Survey median wage data for Heads of Household and multiplied the incomes by 0.6666 for lowest threshold and by 2 for upper threshold. All data was compiled on Feb. 5, 2024.
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