How much money you need to be happy in New Zealand

Sunday, 28 June 2026

New Zealanders hit a financial 'happiness plateau' at a household income of NZ$244,000, the world’s fourth highest due to living costs.

Kiwis remain highly content because non-monetary factors like family, safety, and community matter more than material wealth.

Relying on increased income triggers a 'hedonic treadmill' where the initial buzz of buying more quickly fades.

ANALYSIS: There’s a point where the amount you earn no longer affects your level of happiness, where those extra dollars are nice to have but not really a necessity for a good life.

Researchers call this the “income satiation point” or “the happiness plateau,” which basically means there comes a point where you can’t buy any further joy.

For New Zealand, that figure sits at an annual household income of US$137,361 (NZ$$244,000), making us the fourth most expensive place in the world to buy happiness behind Iceland, Australia and Switzerland.

This is the latest research according to financial services provider Remitly, which adjusted the figures in Purdue University’s landmark study for local purchasing power and inflation.

These figures stand in stark contrast to the median annual household income, which currently sits at $123,000.

So are most New Zealanders just doomed to discontentment due to the arbitrary figure assigned to happiness for our country?

Well, not really.

New Zealand still ranks among the happiest countries in the world, with 77% of Kiwis reporting they were happy in the Ipsos Global Happiness Survey.

It’s also worth pointing out that the $244,000 figure isn’t necessarily an indicator of whether you’re happy or not. This is just the point at which happiness plateaus, no matter how much more you earn after that.

In countries where the cost of living is lower, that figure will simply be lower by virtue of the price people pay at the checkout. New Zealand is an expensive country, which means we need to pay more for the basics.

It is notable, however, that in South Korea, Japan, Spain and Portugal, you can reach that happiness plateau with half the income necessary in New Zealand. These are all countries with high standards of living, but a far lower financial threshold for happiness.

More than money

Otago University Professor Robert Aitken notes that we have a financial baseline for survival, which includes paying for food, housing, transportation and other basic needs.

Once you have enough money for these things, any additional money can give you security or freedom, which can certainly contribute to your happiness.

However, there comes a point where your ability to buy more, invest more or consume more does little to improve your happiness.

Aitken also warns that monetary associations with happiness do not tend to take into account other important factors that matter to Kiwis.

“The consumer is often seen as being voracious or driven by outrageous marketing, but actually, when it comes down to it, what matters is family, connections and community,” says Aitken.

“It’s those things, which are difficult to put a price on, but they’re absolutely important. It reminds me of the Oscar Wilde quote: ‘People know the price of everything, but the value of nothing.’”

Aitken goes on to explain that there are also societal aspects to living in New Zealand, which people in other countries simply don’t have. We have safety, good schools, democratic freedoms and public parks.

These things also have a direct impact on the level of happiness across a society, and they won’t necessarily show up in the income data.

There are some good reasons so many from around the world want to move to New Zealand, say Aitken.

Access to culture and entertainment also matters.

Ireland, explains Aitken, has introduced a universal basic wage for artists because of the valuable contribution they make to society.

Policies like these can greatly improve the experiences of the people living in the country.

It’s part of the reason, Aitken has been pleased to see some politicians focusing more on wellbeing rather than exclusively championing topline economic metrics like GDP.

Beware the hedonic treadmill

Our personal behaviour can also have a powerful impact on our level of contentment.

In 2025, Aitken co-authored research showing that people are happier and more satisfied when adopting sustainable lifestyles and resisting the temptations of consumerism.

“In a world where billionaire weddings are treated like state occasions and private yachts are the new status symbols, voluntary simplicity offers a quiet, powerful counter-narrative — one that values enough over excess, connection over consumption, and meaning over materialism,” said Aitken.

The ability to consume more and then proceed by consuming more will not automatically make you happier.

The idea of the hedonic treadmill helps to explain this.

When we have a positive change, like a job promotion, we experience a quick spike of elation. However, as time passes, we adapt to this new reality, and what was once exciting becomes expected. You then search for the next big thing to come your way.

In this way, relying on external validations for happiness is a bit like running on a treadmill. You can run as fast or as slow as you like to the next big thing, but you ultimately end up in the same place.

This can play out in many ways: work, investing or even online shopping. You get that initial buzz, but it eventually fades away.

If anything, it’s a timely reminder that money can certainly buy some happiness – but not quite as much as you might think.

So what’s your thought on this? Can money buy happiness? And how much money do you think you need to be happy in New Zealand? Let us know in the comments. If you’re using the Stuff app on iOS you’ll need to view Stuff.co.nz on a browser to view and post comments.