Retirees May Find That They Are Now In The Lower Class

According to their income

Their income has likely been reduced considerably.

Life may change slightly or substantially when a person retires from work and regular paychecks are no longer coming. Retirees may have saved lots of money or might have a nice pension from years of working. If that is not the case, there may be a shortage of funds for daily living expenses.

Most people who have retired will learn to live within their means. It may be necessary to make some changes, but life can go on without too much stress unless a lack of enough money creates huge problems.

Based on the Pew Research Center’s income calculator, the UPPER CLASS for a family of three would have an income of $156,600 or higher. That is about double the national median income.

The MIDDLE CLASS is where most people in the United States find themselves with an income between $52,200 and $156,600.

The LOWER CLASS would be earning less than $52,200 a year for a three person household. A significant portion of the U.S. population fall nto this category with about 38% making less than $50,000 in 2021.

There are other factors which might have to be considered such as cost of living in the different geographic areas. People may not need as much money in a small town as is required for a large city.

The top 1% or 2% of the American population have a million dollars or more. Retirees may be in that class if they have money or own a house which has appreciated in value to over $1 million.

The monthly and yearly income of retirees might have been reduced to indicate that they are in the lower class, but they may have funds set aside on which they can draw.

There is a huge disparity between the wealthy and the poor. Retirees may find themselves in the middle or lower end. It is essential for young people to plan for retirement so that their later years can be comfortable.

Thank you for reading.

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