Randy Shilling graduated as a petroleum engineer in Texas. For the first 10 years of his career, he lived in a rented apartment. A turning point came at age 30 when he transitioned to a chemical plant, which boosted his salary by 15%. Through multiple promotions, the 58-year-old now owns his home and has a retirement fund exceeding 3 million USD.

Shilling barely recognized his ascent to the upper-middle class. "I'm still a normal person; I don't have expensive cars or televisions, but when I need to buy something, I can buy it immediately," he said. He and his wife currently have an income of about 220,000 USD per year.

Randy Shilling, his wife Nanci, and son Blake outside their home in Humble, Texas. Photo: WSJ

According to a 2024 report by the American Enterprise Institute (AEI), about 31% of Americans belong to the upper-middle class, a sharp increase from 10% in 1979. AEI categorizes income into 5 groups, with a three-person household earning 133,000-400,000 USD considered upper-middle class. Income exceeding this level is considered wealthy.

Currently, the two highest income groups are expanding. Conversely, the "poor or near-poor" group (earning under 40,000 USD) decreased from 30% to 19% during the same period.

Many families are surprised to find themselves moving up the economic ladder. They perceive their lives as simply more comfortable, not wealthy. These individuals often hold general office jobs rather than being business owners. AEI economist Scott Winship explained: "High-income groups are expanding because wages are rising faster than prices, especially for educated white-collar workers."

Marriage also serves as a financial leverage. Analysis by the Urban Institute indicates that over 80% of upper-middle class and wealthy individuals live with a partner, allowing them to combine incomes and share living expenses.

Gabriel Martinez, 34, is one such example. Starting with a salary of 50,000 USD in 2015, he now earns 180,000 USD annually at a technology corporation. With both he and his wife working and managing their finances, they paid off 100,000 USD in college debt and bought a 160 square meter home in Texas. "My father once worked for less than 40,000 USD. I'm grateful not to be stuck in place like the previous generation," Martinez shared.

With basic needs no longer a concern, his biggest worry now is teaching his children not to be over-reliant, especially since teenagers in the area often drive luxury cars to school.

Data from the Pew Research Center also indicates this trend. In 2023, 19% of Americans were in the income bracket above 200,000 USD, up from 11% in 1971. Beyond salaries, their assets have surged due to booming stock and real estate markets.

The Shilling family in their pool in Humble, Texas. Photo: WSJ

For Chris Wogan, 76, in Pennsylvania, retirement has been smoother than expected. Having grown up in a poor family, the former judge receives 175,000 USD annually from his pension and dividends. He and his wife recently bought a home in a senior living community and frequently travel internationally. "I thought I was just regular middle class, but perhaps I've done better than I imagined," he said.

Despite comfortable finances, many still maintain a defensive mindset. Laura Shields, 46, in New Jersey, has a family income of 240,000 USD. She can afford for her children to participate in overseas extracurricular activities, but she still feels pressure considering the expensive university tuition ahead and expects to take out additional loans.

Bao Nhien (According to Daily Mail)