What Income Makes You ‘Upper Class’? Here’s What You Need to Be in the Top 20%

The term “upper class” conjures up images of wealth and privilege. But what does it really mean in terms of income? While there is no definitive cutoff, households in the top 20% of earners are generally considered upper class.

According to the U.S. Census Bureau, the median household income in 2022 was $74,580. To reach the upper class in 2024, you’ll typically need an income of more than $153,000 — more than double the national median.

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Now, this may seem feasible, but other sources define middle class a little differently, as there are no strict or fixed standards that define the upper class threshold. According to the Pew Research Center report, the median household income for an upper class family of three in 2022 was $256,920. For the middle class, the median income was $106,092 for a family of three.

Income isn’t the only determining factor. Where you live has a big impact on your financial standing. For example, in an expensive area like Santa Clara, you would need $297,800 to be classified as upper class. On the other hand, households in rural areas can qualify for upper class status at lower income levels due to lower living costs.

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Data from the 2021 U.S. Census shows that median net worth varies significantly across economic classes. The upper class owns nearly 67 times as much net worth as the lower class. Here’s a breakdown:

• Lower class: $12,000

• Lower Middle Class: $61,260

• Mid-range: $145,200

• Upper Middle Class: $269,100

• Senior Class: $805,400

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Education plays a critical role in wealth accumulation. In 2021, households headed by a high school or vocational school diploma had a median net worth of $555,900, compared to just $8,460 for households without a high school diploma.

According to a 2022 Pew Research Center report, men were slightly more likely than women to be in high-income households, with 18% of men and 16% of women falling into this category. Marriage appears to significantly improve the economic status of Americans. Of those who are married in 2022, 24% are in high-income households. In contrast, only 7% of those who are divorced, widowed, or never married were in high-income households. Additionally, 19% of veterans were in high-income households, compared to 16% of non-veterans.

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Also see: If there were a new fund backed by Jeff Bezos that offered a target yield of 7-9% with monthly dividends would you invest in it?

For the upper class, wealth protection and growth are essential. Common strategies include diversifying investment portfolios, investing in real estate, and using high-yield savings accounts. These methods help protect against inflation and economic volatility, and ensure long-term financial stability.

No matter where you are on the income ladder, remember that it is your life and you are in control of your financial future. Consulting a financial advisor can provide personalized strategies to help you achieve your goals and manage your finances – whether you are aiming for the top 20% or the top 1%.

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This article How Much Income Do You Make ‘Upper Class’? Here’s What It Takes To Be In The Top 20% Originally appeared on Benzinga.com

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