IEPlus: Skandia International poll: the price of happiness is $162,000
A recent study of over 5,000 consumers across four continents has revealed the amount of net annual income needed for people to feel happy is an imposing $161,810 – 15 times the global average for an individual’s income.
Overall, some 80% of individuals believe that earning this amount each year would make them feel really happy. This is according to the findings of the Wealth Sentiment Survey, a study commissioned by Skandia International, part of Old Mutual Wealth.
The research, conducted across 13 territories, found that the highest levels of aspired income were quoted by individuals living in Dubai who would need more than a quarter of a million US dollars to feel happy – or $276,150 to be precise.
The next highest financial aspirations were recorded in Singapore and Hong Kong, where the levels of desired annual income are as high as $227,563 and $197,702 respectively.
Generally, respondents from Europe feel that much less is required to keep them satisfied, with people in Germany reporting the most modest needs of all countries surveyed ($85,781). The UK has the second highest price of happiness in Europe at $133,010, behind Italy at $175,825.
How much personal annual net income would you need to earn for you to be really happy?
Interestingly, in some territories women reported having higher ambitions than men in order to feel content. For example, in Hong Kong, Italy and Brazil women say they desire 13% ($207,924), 11% ($187,036) and as much as 55% ($192,929) per annum respectively in excess of the amounts quoted by men in order to feel happy.
The study, which looked to explore and understand people’s feelings towards wealth, found that globally, only three in twenty individuals regard themselves as wealthy and that to qualify for the status, an average of $1.76m in disposable assets is required.
In Singapore, the average figure quoted was an ambitious $2.9m, whilst Dubai and Hong Kong cited the next highest levels at $2.5m and $2.46m respectively. Europe, on the other hand, reported relatively modest, and lower than the average, requirements needed for somebody to be considered wealthy. People living in Austria and Germany stated they would need just $0.9m and $1m to call themselves wealthy.
How much wealth does a person need for you to consider him/her to be wealthy?
People in Austria and Germany also reported a higher than average sentiment of feeling ‘wealthy’, with over one in five stating this to be the case. Overall, the highest wealth sentiment was recorded in Brazil, where more than a quarter of people said they feel affluent.
Phil Oxenham, marketing manager at Skandia International comments: “There are many more things in life that can make people happy but there is no doubt that money can help. It is fascinating to see the regional differences in levels of income and capital that people think they need to feel happy and wealthy. These figures are, of course, aspirational and for most of us the important thing is to have a financial plan and make sure that we are saving as much as we can to give us financial security.”
To view the full report highlighting the key findings please click here: