Here’s How Many Gen Zers vs. Boomers Think a $100,000 Income Is Middle Class

01/05/2024

Money Pile $100 dollar bills

Middle class isn’t what it used to be. Born in 1997 and after, Generation Z’s definition of a middle class salary is a clear showing of how much the middle income has shifted in recent decades.

More than 40% of Gen Zers think a $100,000 annual income is middle class, according to a recent GOBankingRates survey. In comparison, only 34% of Boomers believe you need to earn $100,000 per year to be considered middle class.

Interestingly, only 28% of those ages 35 to 44 consider $100,000 annual salary middle class. Slightly higher, just 30% of those ages 55 to 64 share this sentiment.

Also see what is considered middle class in your state.

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Evolving Definition of Middle Class

“The perception of what constitutes the middle class has evolved over the years, influenced by factors like inflation, cost of living and societal norms,” said Cameron Burskey, managing director at Cornerstone Financial Services. “Gen Zers, having grown up in a time of economic uncertainty and witnessing the increasing cost of living, may view a $100,000 income as necessary for a comfortable lifestyle.”

He said this can also reflect differences in what Gen Zers consider a middle-class lifestyle.

“With rising student debt and housing costs, their perception of what it takes to be financially stable might be skewed towards higher incomes,” he said. “However, this perception may not align with the traditional definition of the middle class, which is often associated with a broader range of income levels that allow for financial security and some level of discretionary spending.”

While Gen Zers might consider $100,000 income middle class, he said this isn’t a realistic expectation for everyone.

“Economic disparities, job market conditions and educational attainment levels vary widely within this generation,” he said. “While some may attain high-paying jobs, others may struggle to reach that income level due to systemic barriers or personal circumstances.”

Therefore, he said it’s important for this young generation to learn how to manage their money wisely.

“It’s essential to promote financial literacy and provide support systems to help all members of Gen Z navigate their financial futures effectively, regardless of their income level,” he said. “This may involve advocating for policies that address income inequality, improving access to education and job opportunities and fostering a culture of saving and investment.”

Be Aware: How Much Does the Average Middle-Class Person Have in Savings?

Rising Costs and the Middle Class

It might not come as a surprise, but the middle class isn’t as prevalent as it once was. Just a few decades ago, the vast majority of American households fell into this category, but things have changed.

Specifically, the percentage of middle class households fell from 61% in 1971 to 50% in 2021, according to the Pew Research Center. Notably, the median income of middle class households was $90,131 in 2022 and $59,934 in 1970 — with the former 50% greater.

Gen Zers might consider $100,000 income middle class, but that doesn’t align with reality for the average American household. In 2022, real median household income was $74,580, according to the U.S. Census Bureau.

Of course, six-figure incomes are standard for many industries. For example, construction managers earn an annual mean wage of $116,960, education administrators — kindergarten through secondary — earn an annual mean wage of $111,020 per year and financial analysts and advisors earn an annual mean wage of $123,330 per year, according to the Bureau of Labor Statistics.

Despite the prevalence of annual incomes topping $100,000, this isn’t the norm. The annual mean wage of all occupations is $65,470, according to the BLS.

This can be problematic for many reasons, including the ability to own a home. The average homebuyer needs an annual salary of $114,627 to afford the median-priced U.S. home, according to 2023 Redfin data.

Notably, many Gen Zers are also likely saddled with student debt. As noted above, this can add to their perception of the amount of money needed to sustain a decent lifestyle.

As of the 2021 to 2022 school year, the average cost of tuition at a public, four-year university was $9,700 per year, according to the National Center for Education Statistics. This surged to $38,800 per year for students at private nonprofit universities.

Given these numbers, it’s not terribly surprising that Gen Zers believe a $100,000 income is middle class. This definition has evolved over the past several decades and will likely continue to do so.

As living expenses continue to rise, it’s likely that more people will begin to consider six figures a standard middle class income. Once a coveted salary mark only the most fortunate were able to hit, this may become the baseline for being able to afford a traditional and comfortable lifestyle in the U.S.

Evolving Definition of Middle Class

Rising Costs and the Middle Class

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