Are you part of the middle class, and how do you compare with your peers?
The Transamerica Center for Retirement Studies recently surveyed more than 5,700 middle-class adults. Transamerica defines the middle class as people with an annual household income between $50,000 and $199,999. This is a pretty broad range that accounts for 55% of American adults.
Most of the middle class, according to the survey, prioritize enjoying life, being healthy and fit, and focusing on their families — but let’s break down the differences in the middle-class demographic.
Age and generation
Middle-class wealth doesn’t appear overnight, and Transamerica’s study reflects that. They found that the median age for those in the middle class is 47 years.
Millennials are more likely than any other generation to be middle-class, making up 30% of the population. They’re followed closely by baby boomers (28%), then Generation X (26%), Generation Z (13%) and the Silent Generation (4%).
Transamerica defines the generations as:
- Generation Z: Born 1997 to 2012 (12 through 27 years of age)
- Millennial: Born 1981 to 1996 (28 through 43 years of age)
- Generation X: Born 1965 to 1980 (44 through 59 years of age)
- Baby Boomer: Born 1946 to 1964 (60 through 78 years of age)
- Silent Generation: Born 1928 to 1945 (79 through 96 years of age)
Gender
Men are slightly more likely than women to fall into the middle class. Men make up 51% of the middle class while women make up 48%. This could be a reflection of the ongoing gender wage gap. According to the U.S. Department of Labor, on average, women who work full-time year-round are paid 84% of what men are paid.
Those who identify as LGBTQ+ are a minority of the middle class as well, sitting at 9%. One percent of Transamerica’s survey respondents declined to answer this question, but the other 90% of respondents identified as not being part of the LGBTQ+ community.
Marital status and household size
Most (52%) of the middle-class population is either married or in a civil union. More than a quarter (27%) are single and have never been married before, 9% are divorced, 7% are living with a partner, and 4% are widowed.
That dual-income homes likely make up the majority of the middle class doesn’t come as much of a surprise. According to the Bureau of Labor Statistics, the average wage in America was $47,940 as of 2023. So, it’s certainly harder to reach the $50,000 minimum for middle-class status as an individual.
Middle-class homes are most likely to be made up of two people (36%) or three people (21%). Only 11% of middle-class households are made up of one person, 18% are made up of four people and 14% are made up of five or more people.
Education, employment and military status
Most of the middle class doesn’t have a college degree (60%). The other 40% has a college degree or more. But college degree or not, they’re mostly (58%) employed, and 21% are retired. Self-employed individuals make up 7% of the middle class, followed by unemployed individuals (6%), homemakers (5%) and students (4%).
Middle-class individuals aren’t statistically likely to be employed by the military; only 10% are veterans while 1% are enlisted for reserve duty and less than 1% are on active duty.
Race and ethnicity
White people make up most of the middle class (64%). Hispanic people make up 17% of the middle class, followed by Black and African Americans at 11% and Asian Americans at 6%. Transamerica classifies the remaining 2% as “other.”
Location and homeownership
Middle-class households are more likely to be located in Southern states (38%). The second-most likely area is the West (24%), followed by the Midwest (21%) and the Northeast (17%).
These households are also most likely to live in suburbs, with 53% of the middle-class residing in these areas. Then, 27% live in urban areas and 19% live in rural areas.
Nearly 70% also own homes while 23% rent. Eight percent say they live with friends or relatives.
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