Money doesn't always buy happiness: NZ research

Money doesn't always buy happiness, according to new research. Photo/Getty Images.

Kiwi research has backed up what many have always known - having more money doesn't always make you happy.

Research carried out by AUT university for life insurer Sovereign has revealed people who feel they can live on what they earn are most likely to rate their well-being as high.

"This is true even after adjusting for household income," said Grant Schofield, a professor at AUT's Human Potential Centre which collected and analysed the data.

Two thirds of people surveyed reported their income was adequate but the highest level of well-being was reported by retired people over the age of 65 despite them have a low median household income.

Nearly 40 per cent (39.7 per cent) of retirees met the "awesome" factor cited as the top level of well-being.

Schofield said income still played an important role in determining overall well-being but being able to live within your means also played a big part in making people feel happy.

"...the research is showing effective money management, whether you're earning a little or a lot, can influence high levels of well-being."

Adults without children over the age of 55 and couples with older children were the next most likely to have a high level of well-being at 33.6 per cent and 30.1 per cent.

While young singles and sole parents had the lowest levels of well-being with less than half of all sole parents reporting having enough income to meet their needs.

The research also found New Zealanders rate lowly compared to Europeans when it comes to having enough to live off or live comfortably.

A 2012 European Social Survey showed over 90 per cent of people living in Denmark and Norway were coping or living comfortably compared to 67.3 per cent of Kiwis.

New Zealand ranked 19th out of 30 countries.

The Sovereign Wellbeing Index was based on online research from 10,012 adults surveyed about their well-being health and lifestyle last year.

Who has the highest level of wellbeing?
• Adults over 65 - 39.7 per cent
• Adults without children aged over 55 - 33.6 per cent
• Couples with older children - 30.1 per cent

See the full report here: