Places

Putting a price on happiness, country by country

The price of happiness varies greatly from country to country, whether you live in Japan or Burkina Faso

Updated 5 years ago · Published on 26 Mar 2021 2:00PM

Putting a price on happiness, country by country
Bermuda is the country where happiness comes at the highest price. – Getty Images, March 26, 2021

IT'S often said that money can't buy happiness, even if it certainly helps. In fact, researchers in the US have worked out a "happiness premium" for various countries around the world. For example, they consider that you'll need some US$105,000 (RM435,800) per year to be happy in the US.

Scientists from Purdue University previously determined that, on average, people need an income of  US$170,000 a year in order to feel happy in life. Beyond that amount, anything you earn no longer increases feelings of happiness and satisfaction.

But the price of happiness varies greatly from country to country, whether you live in Japan or Burkina Faso, for example. A new study from Expensivity draws on the scientists' work to establish a "happiness premium" for 160 countries worldwide. This notably takes into account purchasing power indicators from the World Bank, as well as local cost-of-living data.

It turns out that Bermuda is the country with the highest "happiness premium" at nearly US$145,000 – no doubt because the cost of living is apparently 47% higher than in New York City. Bermuda is followed by Australia and Israel, where happiness comes at a cost of US$135,321 and US$130,457, respectively.

While Finland tops the list of the world's happiest countries in the UN-sponsored "World Happiness Report" for the fourth year running, this privileged position comes at a cost – count US$103,337 to be "onnellinen" or "happy" in Finnish. For a few dollars more, you can see if the grass is greener in the US, where the "happiness premium" is US$105,000. In France, the study estimates that happiness can be found with US$89,200 a year.

If your savings don't stretch to pursuing happiness in Bermuda or Australia, why not try your luck in Suriname. Here, the price of happiness comes in at a considerably more affordable US$6,799. Argentina and Angola are also among the countries where happiness is the least expensive, according to the study. 

Top 10 countries with the highest "happiness premium": 

  1. Bermuda (US$143,933)
  2. Australia (US$135,321)
  3. Israel (US$130,457)
  4. Switzerland (US$128,969)
  5. New Zealand (US$128,844)
  6. Norway (US$114,147)
  7. Denmark (US$109,142)
  8. Japan (US$107,587)
  9. Iceland (US$107,351)
  10. USA (US$105,000)  – ETX Studio, March 26, 2021

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