The American middle-class squeeze has grown even worse in recent years, with many in the “forgotten middle” facing financial pressure and poor health as they near retirement age, a new study reports. Essentially, the U.S. middle class has split in two, and those relegated to the lower-middle are facing tough times in retirement, said lead researcher Jack Chapel. He is a doctoral candidate in economics at the University of Southern California Dornsife College of Letters, Arts and Sciences. “We see that the middle class is hollowing out a little bit and separating out into this lower-middle and upper-middle,” Chapel said. “People in this lower-middle group compared to people in the upper-middle group are going to be living longer lives, but living a longer proportion of their life with worse health.” For the study, researchers fed federal survey data into a computer simulation to estimate future life expectancy and disability for people in their 50s at different times between 1994 and 2018. Quality-adjusted life expectancy — living not just longer, but healthier — increased by 5% for people in the upper-middle economic status group, the results showed. However, their lower-middle peers didn’t experience a similar increase. Instead, their quality-adjusted life expectancy has stagnated, the researchers found. They will live longer, but also will suffer more in their old age. For example, an average 60-year-old woman in… read on > read on >

















