10 Things the Middle Class Won’t Be Able To Afford in Less Than a Decade
LeoPatrizi / Getty Images
LeoPatrizi / Getty Images
Caitlyn Moorhead
Wed, November 6, 2024 at 8:00 AM PST 6 min read
In a world where the financial landscape is constantly shifting, the American middle class often finds itself in a precarious position.
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The cost of living is increasing across the board thanks to areas such as housing, higher education and healthcare, just to name a few. People used to find that earning a standard middle-class income could still provide comfort, but now, they find themselves living paycheck to paycheck.
Caught between the affluence of the wealthy and the struggles of the lower middle-class families and economic tiers, middle-class incomes are putting individuals in steeper financial challenges that could significantly alter their lifestyle in the coming decade. When you have to battle student loans well into the age when you should have been saving for retirement, the struggle to afford any future luxuries or even necessities starts to become overwhelming.
Here are five things that, if current trends continue, may become unaffordable for the middle class in less than 10 years.
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Retirement
GOBankingRates recently conducted research to determine how much you would need to retire in each state to live comfortably in each state. Here are some key takeaways from popular retirement destinations:
Florida: A popular retirement destination, Florida has an estimated annual cost of living of about $58,396 which means you need at least $736,588 saved to cover costs for 20 years or $1.1 million to cover 30 years.
Arizona: Another place many seniors prefer to retire to is Arizona. Here, the estimated annual cost of living is $63,600 which means minimum savings of $840,661 to last you 20 years.
California: $78,864 is the average annual cost of living in California, which puts your retirement savings to the test as you’ll need $1.1 million saved to last you two decades.
These numbers start to get a bit alarming when you look down the line 10 years or even 20 or 30, especially when pitted against middle-class household incomes and what they are realistically expected to be able to save. Even though these figures are just averages and estimates, it’s still a bit scary to start doing the retirement savings calculus and come up short of the answer you need.
Private Education for Children
If you aren’t overly enthused with the high school in your district or even the larger public system in your area, you may be looking for other educational options. Though private schooling can offer certain advantages, it comes with quite a significant price tag attached.
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