“Middle class” is often used as a monolithic term. When politicians invoke it, they’re referring to anyone who isn’t wildly wealthy or who wouldn’t classify as financially disadvantaged. But there’s more nuance in the term than slogans would allow: The middle class often exists on a spectrum of incomes and life experiences — compelling people to differentiate between the “lower middle class” and “upper middle class.”
Check Out: What Class Do You Actually Belong To? The Income Breakdown Might Shock You
Read Next: How Much Money Is Needed To Be Considered Middle Class in Your State?
Though terms like these can’t fully encapsulate people’s specific financial realities, they can be useful. The differences between how the lower middle class and upper middle class are living can illuminate broader financial trends within a single year.
Curious about what’s currently separating the lower middle class and upper middle class in 2025, I decided to get a broader overview from ChatGPT. While ChatGPT isn’t a substitute for expert opinions, it gave me a baseline understanding of the gulf between these two groups within the middle class this year.
Income and Wealth
ChatGPT opened by clarifying that definitions of the middle class, along with its subgroups, are often relative — with many analyses using median household income, adjusted for household size and cost of living. It shared that, per Pew Research, middle-income households have incomes between two-thirds to double the U.S. median income. Households above that range are considered upper income, while those below it are considered lower income.
“To be ‘upper-middle class,’ many reports take the top third of that middle-income band,” it said. “According to GOBankingRates, for instance, in Maryland (which has a high cost of living), the upper-middle class bracket is roughly $158,125 to $203,304 for households.”
We always appreciate the shout-out — so thanks, ChatGPT, for plugging our article, “The Income Considered Lower-Middle Class in Every State.” That article includes income ranges for every state.
Still, in case I was looking for a more existential response, ChatGPT also talked about other aspects of personal finances that are more accessible to the upper versus lower middle class.
“The upper-middle class tends to have more ability to accumulate assets (investments, home equity, savings) that afford more buffer against financial shocks,” it wrote. “Lower middle may struggle more to build up this buffer.”
Learn More: 6 Signs You’re Actually Upper-Middle Class (Even If You Don’t Feel Rich)
Education, Occupation and Career Trajectories
ChatGPT also described differences in the levels of education and types of careers people in the upper and lower middle class might find. It said the upper middle class is more likely to include people with advanced degrees and professional certifications, in addition to solid undergraduate credentials. People in the lower middle class generally have a four-year degree, associate degree or vocational training.
The AI even got granular, coming up with lists of hypothetical occupations for people on both sides of the spectrum (I’ve included its observations verbatim):
- Upper middle: professions that require specialized skills, credentials or prestige (doctors, lawyers, engineers, senior managers, etc.)
- Lower middle: more technical, administrative, support or lower-level managerial roles. They may have more job security than blue-collar sectors but less upward pay/leverage compared to upper-middle roles.
Lifestyle, Security and Discretionary Capacity
One of the most significant differences between the upper and lower middle class — according to ChatGPT, that is — is how much easier it is for the former to afford discretionary spending like vacations, high-quality healthcare, better schools or child enrichment. In contrast, people in the lower middle class might enjoy some discretionary income but must be more mindful of their spending.
“Upper-middle households tend to have more buffer (savings, investments, job flexibility) to weather economic downturns; lower-middle ones are more vulnerable to shocks (job loss, medical expenses, unexpected expenses),” ChatGPT said.
In addition, upper-middle-class people can expect “housing in better neighborhoods, quality of schools, access to extracurricular activities, perhaps more travel, [and] better ability to retire comfortably or at least plan well for retirement.”
Geography and Cost of Living
Of course, where you fall within the middle-class subgroups depends heavily on where you live.
“What qualifies as ‘upper-middle class’ in a rural or low-cost region is very different from what qualifies in a high-cost metro area (New York, San Francisco, Washington, D.C., suburbs, etc.),” ChatGPT said. “A salary that seems high in one place can be just enough or even low in another once housing, taxes, transportation, childcare, etc., are factored in.”
Subjective Identity and Perceived Class
While certain objective barometers can help determine who might be considered upper or lower middle class, there are also more subjective factors that impact self-perception.
ChatGPT noted that how people feel about their class status can shift once their income passes a certain threshold. Other circumstances can also influence how someone positions themselves within the middle class.
“Also, culture, family background, debt load, lifestyle expectations, and seeing people around you matter more than raw numbers sometimes,” ChatGPT said. “Someone earning a solid upper-middle income but with high debt or high expenses (e.g., for childcare, elder care, high mortgages) might feel closer to lower-middle.”
What’s Changing or Tightening in 2025
Acknowledging the specificity of my question — I wanted details about this year — ChatGPT offered insights into how the ups and downs of 2025 have impacted the upper and lower middle class. I’ve included its insights in full:
- Inflation and rising costs (housing, healthcare, child care, schooling) are squeezing pockets of the middle class. For many in the lower-middle class, what used to be “comfortable” is now more precarious.
- Wage growth hasn’t kept pace with cost growth in many places, meaning that being in a given income bracket no longer stretches as far.
- There is increasing divergence: Those able to invest, own property, etc., pull further ahead; those with fewer assets or more debt fall behind even if their income is decent.
My ChatGPT search proved surprisingly fruitful. Still, whether you’re looking to move up from lower middle class to upper middle class — or build on your existing comfort within the upper middle class — you should consult a financial planner.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT What’s Separating the Lower Middle Class and Upper Middle Class in 2025: Here’s What It Said
