New Zealand Household income not enough to be happy.

The recent Parliamentary Economic Review looked at the Household incomes and housing costs for the year ended 30 June 2020. Household income includes income from wages and salaries, self-employment, investments, government benefits, along with superannuation income. Some main points from the article:

  • Annual average household income was $107,731
  • Median annual household income was $88,327
  • Data only covers nine months to March 2020 – Stats NZ unable to collect data during the COVID-19 lockdown.
Stats NZ

Highest/lowest household incomes were:

  • Auckland region had the highest average annual income at $128,747
  • Wellington region $123,533.
  • Manawatū- Whanganui region $85,841.

Housing costs include spending on rents and mortgage repayments (both principal and interest repayments), along with spending on property rates, and building-related insurance. NZ households spent an average of $21 of every $100 on household costs which is similar to 2019. Of those in rental accommodation 26.5% spent more than 40% of their household income on rental payments and other housing costs.

What level of income makes us happy? New Zealand 5th

However a “happiness premium” established by researchers at Purdue University, in the United States suggested that an individual salary of $178,328 (US$128,844) will make New Zealanders happy but as shown above our average household income is $107,731. Money and finance website Expensivity has calculated the salary level in each country that would prevent unhappiness. Researchers looked at data from 1.7 million people and cross-referenced their earnings and life satisfaction. They found that more money boosted happiness – but only to a point. Beyond that, further increases in income could actually lead to more unhappiness. New Zealand ranks as the 5th highest income required to achieve happiness.

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