Retirement Planning Lessons from the World's Happiest Countries
For the eighth year in a row, the happiest country in the world is ...
Finland!
An annual collaboration between Gallup polling, the University of Oxford, and the United Nations, the 2025 World Happiness Report asked respondents from more than 130 countries to rate their lives on a scale from zero (the worst) to 10 (the best). Researchers also factored in questions about kindness and generosity, as well as how people perceive the benevolence of their neighbors.
Not only did Finland claim the top spot, but fellow Nordic countries Denmark, Iceland, Sweden, and the Netherlands rounded out the top five.
And the United States?
We actually dropped from 23 last year down to 24, due in part to younger people feeling more pessimistic about the future.
So, where would you rate yourself on that scale? Is there anything we can do to experience more happiness in our lives? And how does money fit into this equation?
Let's look at the three main conclusions that the WHR drew from its data and think about how we can apply those lessons to comprehensive financial planning.
1. "People are much too pessimistic about the benevolence of others."
Imagine you drop your wallet while you're walking down the street. A stranger who lives in your town finds it. Do you expect that person will return your wallet, or keep it? If your wallet ends up in the hands of a police officer, will they make sure it gets to you?
The WHR uses this thought experiment to extrapolate how people feel about their communities (the stranger) and their public institutions (the police officer). The United States ranks pretty low for both measures: 25th for expecting the police to return a wallet, and 52nd for expecting a stranger to return it. The happier Nordic countries mostly believed that lost wallet would find its way home.
However, many researchers have actually performed this experiment in cities all over the world, randomly dropping wallets and tracking the results. And according to the WHR, "When wallets were dropped in the street by researchers, the proportion of returned wallets was far higher than people expected."
A small sample size? Sure. A relatively low bar for being good to your neighbor or doing your job? Maybe. But I think the larger point the WHR is making is that so many of us have these low bars in our heads, and we don’t think people will clear them, no matter how big or small the stakes. The research just doesn’t bear out those negative assumptions.
2. "Our wellbeing depends on our perceptions of others’ benevolence."
Even if we don’t realize it, pessimism about other people sure seems to affect our thinking about all walks of life. According to the WHR, "Believing that others would return a wallet predicts a larger boost to life satisfaction than a doubling of income."
Reading that conclusion reminded me of the idea that earning more money stops improving our happiness once you’re bringing home X dollars every year. $75,000 used to be that “magic number.” Newer studies suggest it might be $100,000, or even $500,000.
But, in my experience, there’s rarely a “number” that makes people feel better about their lives, or even about a major life transition like retirement. At some point, chasing after another zero is just diminishing returns when you could be using the resources you already have to enjoy your life more.
And, for most of the folks I’ve worked with, getting off the hamster wheel and spending more meaningful time with people compounds happiness much more than money. The WHR suggests that believing you’re going to get a return on that investment in others isn’t a leap of faith. It’s a mindset adjustment that could have a huge impact on every stage of your life.
3. "When society is more benevolent, the people who benefit most are those who are least happy."
Interestingly, while the U.S. ranked relatively low on measures of expected kindness, it ranked higher on the kindness we deliver, such as volunteering and charitable giving.
There’s also been a major boost to “benevolence,” as gauged by the WHR, since the pandemic.
In other words, even though we may not trust each other as much as we should, folks are still inclined to help when they’re needed. And if we could get past more of our differences – perceived or otherwise – we might give more, connect more, and spread more happiness throughout our communities.
4. We have more control over our happiness than we realize.
That’s my big conclusion from the World Happiness Report. With all the uncertainty we’re facing in the world right now, it’s important to remember that we have the power to make life better for ourselves and those around us every single day.
Call up that friend you haven’t seen in a while and grab a cup of coffee.
Take a Friday off and spend a long weekend out of town with your spouse.
Volunteer to coach your kid’s soccer team.
Start a morning walking group with other retirees in your neighborhood.
And come visit Keen Wealth to see how our comprehensive financial planning process can help you feel more confident about your money and your life.
The World Happiness Report 2025
About Bill
Bill Keen is a financial advisor with over 30 years of industry experience. As the founder and CEO of Keen Wealth Advisors, a registered investment advisory firm, he focuses on providing personalized retirement planning designed to help people thrive before and during their retirement years. With a passion for educating others, Bill regularly blogs about retirement planning, hosts the podcast Keen on Retirement, and has contributed to Forbes, U.S. News and World Report, Reuters, Wall Street Journal’s Market Watch, Yahoo Finance, and other publications. Based in Overland Park, Kansas, Bill and his team work with clients throughout the greater Kansas City area and across the nation. To learn more, connect with him on LinkedIn or visit www.keenwealthadvisors.com.
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