£43,000 a year is enough to make anyone happy

MONEY can buy happiness – but it needs to be at least £43,000 a year.

A study found that a yearly income of between £43,478 and £54,347 led to “emotional well-being” on a dayto-day basis.

When comparisons were made to other people or higher goals, a higher annual pay of £68,840 led to what the authors described as “life satisfaction”.

However, once the threshold was reached further increases in income tended to lead to reduced life satisfaction and a lower level of wellbeing. This may be because money is most important for meeting basic needs, purchasing conveniences and perhaps repaying loans.

After the optimum point of needs met, people are driven by desires such as seeking more material gains and engaging in social comparisons, which could, ironically, lower their sense of well-being.

The research, published in science journal Nature Human Behaviour, is based on figures from the Gallup World Poll, a representative survey of more than 1.7 million people in 164 countries.

Study author Andrew Jebb, a psychologist at Purdue University in Indiana, said: “These amounts might be surprising as what we see on TV and what advertisers tell us we need would indicate that there is no ceiling when it comes to how much money is needed for happiness, but we now see there are some thresholds. It’s been debated at what point does money no longer change your level of well-being. We found that the ideal income point is $95,000 (£65,840) for life evaluation and $60,000 (£43,478) to $75,000 (£54,347) for emotional well-being. This amount is for individuals and would likely be higher for families.

“There was substantial variation across world regions.”

Dr Jebb said higher earners who have reduced life satisfaction and a lower level of well-being may start to compare themselves to other even wealthier people.

He added: “The small decline puts one’s level of well-being closer to individuals who make slightly lower incomes, perhaps due to the costs that come with the highest incomes.

“These findings speak to a broader issue of money and happiness across cultures. Money is only a part of what really makes us happy, and we’re learning more about its limits.”

IT TURNS out that money does buy happiness after all. Some money anyway. New research has pinpointed the sum of £43,000 a year as providing “emotional wellbeing”. Or does that simply translate as “keeping the wolf from the door”.