Americans do not like to talk about class. Many like to think that there are no classes in the US and that sufficient hard work and one’s socio-economic status can be raised. These days, discussions of the disparity of wealth and income are acceptable ways to talk about class. 

There are various studies that suggest such mobility is becoming more difficult. A college degree no longer guarantees a secure middle-class living and lifestyle. Moreover, household income is a strong indicator of a range of life opportunities. In addition to consumption patterns, the location of residence, and marriage opportunities, income appears to also shape life expectancy. 

The above chart from Bloomberg, based on research it cites, shows that 50-year American men, whose income places them in the lowest 20%, are expected to live just past 76 years. This is six months less than the previous generation. On the other hand, 50-year old American men who are in highest quintile in terms of income live to nearly 89, which is seven years more than the previous generation. 

The research Bloomberg cites is also interested in the impact of the divergence in life expectancy on the distribution of social welfare. Previously, wealthier people would get more from Social Security (actual payment plus length of collecting), while poorer people would get more assistance from Social Security disability insurance and Medicaid.Medicare did not differ much based on income. 

Research suggests the Social Security gap has widened considerably. When Reagan was elected President, the wealthy 50-year male could anticipate collected $103k more than his poorer neighbor. In 2010, the gap was $173k. The researchers note that due to the widening life expectancy gap, Social Security is becoming less progressive.

If all government benefits are included and adjust for the taxes paid by American men after the age of 50, the lifetime value of government benefits is less skewed. However, the boost to middle and upper incomes is still significant.