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A recent report issued by the research policy group and an academic institute Demos, estimates that only about one-third of middle income families in the country are financially secure enough to remain in the middle class in the long term.

Middle class families were defined as including families that have a household income of at least two times, but no greater than six times, the federal poverty guideline for family size (a middle-class family of four earns between $40,000 to $120,000).

The report noted that about four out of five middle-class families do not have sufficient assets to cover three quarters of essential living expenses for even three months should their source of income disappear. Essential living expenses were defined as food, housing, clothing, transportation, health care, personal care, education, personal insurance and pensions.

The summary acknowledges that the middle class is a social and economic cornerstone of the United States and is a key part of the engine that drives American prosperity. It goes on to say that the middle class purchasing power is essential to a strong economy.

The summary also points out four needs of the middle-class if they are to grow:

• Financial assets to cover in case of job loss or serious illness, a solid nest egg for a comfortable retirement, and assist children get off to a good start toward economic security;
• An education necessary to find a good job in today’s competitive global economy;
• Incomes that make it possible to afford quality housing and other essential living expenses; and
• Comprehensive, high quality, affordable healthcare for all family members

In conclusion the report states that this nation must renew its focus on supporting a strong middle class and to ensure that the efforts made extend equally to all Americans.

Click here to read the report.