If you are like most Americans, you can still identify it as middle class even if you watch rent, groceries and basic expenses around you. You may not feel rich, but you are working, paying your bills, and even saving a little. So you think you are still part of the middle of that great economy. But what if the label is no longer suitable?
For decades, the “middle class” has been a sign of stability, security and moderate comfort. It represents a dream: a house, a car or two, maybe once a year, and have enough income to support the family. But in 2025, that dream is being revealed. The wages did not keep up with the cost of living. Healthcare, education and housing are swallowing up wages. Even those who seem to be doing “good” are increasingly facing crises away from financial destruction.
Do you think you are still in the middle class? These five statistics may prove that otherwise, they may change the way you see your place in the economy forever.
1. If you don’t have at least $50,000 retired at 40, you’re not alone, but you’re behind
A recent Fed study shows that nearly 60% of 40% of Americans save less than $50,000 for retirement. For the middle class, the number is shocking. Financial experts recommend that by the age of 40, your annual salary should be at least two to three times. But for most people, it’s completely out of reach.
If you have been focusing on immediate needs, such as paying off student loans, helping older parents, or paying for childcare, it is not uncommon for you. But this trade-off comes at a price. Retirement insecurity is growing, and the idea of post-work life is becoming a luxury rather than a guarantee. If your retirement prospects are more about survival than relaxation, you may no longer fit into the traditional definition of the middle class.
2.63% of middle-income families say they are paying for their salary
that’s right. Even if the income is between $50,000 and $150,000 a year, most so-called “middle-class” families have little to no tread. According to the latest report from LendingClub, nearly two-thirds of these households reported having little savings at the end of the month.
This has nothing to do with irresponsibility. It’s about mathematics. When rent or mortgage payments consume 30-50% of your income, groceries cost 30% more than three years ago, and healthcare deductibles swallow thousands of dollars a year, what can you save with thousands of money left? Even dual income families with good jobs are trapped in a cycle of endless work just to maintain a lifestyle that once felt comfortable.
3. Most middle-class Americans are now out of reach
There was a time when home ownership was considered the cornerstone of middle-class stability. But in 2025, the median house price in many urban areas will exceed $400,000. At current interest rates, this means monthly payments are usually over $3,000, rather than including taxes, insurance and maintenance.
According to Redfin, less than 30% of homes listed in 2024 are considered affordable for median household income. Since ten years ago, this has come down significantly. The rent is not much better. In many cities, monthly rent competitors nowadays or exceed mortgage payments, leaving families in a failed situation: they cannot be purchased, they are almost impossible to rent.
If you feel like home ownership is getting further and further apart every year, you won’t imagine it. You are witnessing a fundamental shift in the real burden of the “middle class”.
4. The average cost of raising a child is now over $300,000
If you are raising a child, you may have much more payment than your parents. The USDA reports that the cost of raising children from birth to 18 years old has exceeded $310,000, excluding colleges. The average child is over $17,000 per year.
Nursery, extracurricular supplies, school supplies, clothing, food – add up very quickly. For many families, this fee will devour any opportunity to build wealth, preserve or plan for the future. This also forces the difficult choice: Can you afford a second child? Can you afford to stay at home with a parent? Can you afford to move to a better school district?
These trade-offs are personal, but they are also economic indicators. If your family has to choose between survival and safety, you may be living under the fantasy of a middle-class lifestyle without the safety net that once came with it.
5. Healthcare costs are number one in bankruptcy in the United States
Even Americans with insurance are trapped in medical debt. An unexpected diagnosis or accident can trigger thousands of bills, even for those with so-called “good” jobs and employer-sponsored insurance. The middle class once had enough mats to absorb such financial shocks. This is no longer the case.
Today, more than 60% of U.S. bankruptcy is linked to medical expenses. Many people try to manage by putting hospital bills on credit cards or taking out loans. This often leads to long-term debt, lower credit scores and long-term financial anxiety. If the prospect of getting sick feels like a sentence of economic death, it’s not the middle class – that’s survival mode.
The myth of middle-class security is being cracked
So, why are there many people who still stick to the “middle class” label? Part of it is cultural. We already have the conditions to believe that if you work hard, earn a stable income and live modestly, you are part of the backbone of the U.S. economy. But that backbone is buckling.
The truth is, many are still Feel The middle class is financially vulnerable. They are stuck between the wealthy elite who build wealth through investment and the working poor who have never received a fair shot. The middle class we know is shrinking not because people stop trying, but because the system stops working for them.
So… are you still in the middle class?
The middle class is no longer just income. It’s about stability. It’s about having the ability to survive an emergency, plan for the future, and live without the ongoing financial stress. If it sounds impossible lately, you are not alone and you won’t imagine it.
It’s time to start rethinking what financial security means in 2025. This does not mean giving up. This means taking a real attitude to numbers, throwing away shame, and finding new ways to build resilience.
After reading these statistics, do you still feel like you are middle class or have you quietly changed your definition without anyone saying it out loud?
Read more:
Debt is the new middle class: Why everyone looks rich but owe everything
Middle class is dying, these 7 daily expenses are killing it
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to popular culture, she wrote everything in the sun. When she is not writing, she will spend time outside, reading or embracing two corgis.
