How does finance impact happiness
A recent survey from NobleOak explored what factors impact our happiness. Here’s what it found. Brought to you by NobleOak.
A range of factors help to shape our everyday emotions, but how would you describe your current level of happiness? This is one of the questions that insurer NobleOak sought to answer in a survey* of more than 1000 Australians.
In its eighth year of conducting the survey, NobleOak set out to discover Australians’ current views on factors relating to life insurance, finance more generally and overall happiness. While the pandemic had a negative impact on many aspects of life, creating financial stress for many and physical health concerns surrounding the virus itself, the good news is happiness is now back to pre-COVID levels, with an average of seven out of 10.
While the survey found that happiness is highly linked to how healthy people feel, there is also a clear link between people’s happiness, feeling in control of their financial situation and the ability to cover an unexpected expense.
How are you feeling?
Since 2018, people consistently tend to be more optimistic if they hold life insurance, as opposed to if they don’t (29% for those with life insurance compared with 24% for those not holding life insurance in 2023). This implies individuals with life insurance may feel more secure and better equipped to navigate unforeseen financial challenges or life events, influencing their overall optimism about the future.
The reasons for a high happiness rating include having a strong family or friendship network, generally having a positive attitude to life, or feeling they were doing well financially. While the top response for both gender respondents was ‘family/people around me’, interestingly, male happiness is equally dictated by their ‘financial situation’ (23%) and ‘positive attitude/life is good’ (23%), whereas only 15% of female respondents said their financial situation was the reason for their happiness.
The number one reason Australians might be feeling unhappy or pessimistic (46% ‘pessimistic’) is the economy/cost of living. The overwhelming thought is we’re pedalling hard but getting nowhere. Many commented their wages aren’t rising with the cost of living.
Who is happier?
Male respondents are more likely to be unhappy/pessimistic due to external factors (the economy, cost of living, global events), while women are more likely to choose responses related to their family, work situation, health and stress. Singles are generally less likely to be happy than those in the other categories (couples and families), which wasn’t surprising considering having ‘family/people around me’ was the main reason cited for being happy.
Singles also admitted their main reason for unhappiness and pessimism is the economy, with one respondent stating, “financial strain, mortgage rate increases and cost of living” were all to blame for their low rating.
Understandably, happiness is directly correlated to how healthy people see themselves. Those ranking themselves as healthy (four or five out of five) have a happiness level of 7.4 compared with those with an unhealthy ranking of 1–2 with a happiness level of 6.2.
Low perceived levels of financial and physical health seem detrimental to individual happiness, with those who rate both as positive being the happiest.
*Research conducted on behalf of NobleOak by The Market Intelligence Co, in December 2023 with more than 1000 Australian citizens or residents.
Member Benefits offer
Australian CA ANZ members qualify for a 10% lifetime discount on life cover rates with NobleOak**. To get a quote today, visit: nobleoak.com.au/charteredaccountants
Terms and conditions
Important information: Please note, cover is available to Australian residents only. NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302 (NobleOak Life) issues the products.
General advice: The information contained in this document is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before making a decision to purchase or continue with a product you should read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG) found at nobleoak.com.au and consider this information having regard to your own objectives, financial situation and needs. If you are considering replacing an existing life insurance policy you should consider your circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed.
**CA ANZ discount: Australian CA ANZ members are entitled to a 10% lifetime discount on NobleOak Life’s standard Premium Life Direct premium rates for its term life cover (10% discount applies to term life cover only). The offer(s) are available for new customers only and can be used only once. Not able to be used in conjunction with another advertised offer.
No advice: Chartered Accountants Australia and New Zealand (CA ANZ) does not provide any financial service or advice in connection with any NobleOak products. All products and services are provided by NobleOak Life, not by CA ANZ. CA ANZ is not a representative of NobleOak Life and accepts no legal responsibility for any advice given by or any act or omission of NobleOak Life. CA ANZ does not warrant that any of the information provided by NobleOak Life is accurate or complete. Before agreeing to acquire any products or services, you should read NobleOak Life’s PDS, terms and conditions and check whether you meet the eligibility requirements. CA ANZ is a marketing partner of NobleOak Life only and receives a marketing fee from NobleOak Life. If you have any questions, feedback or complaints about the products or services, you should contact NobleOak Life directly.