Millennials said in a survey they needed $525,000 a year to be happy. Here's what a Nobel prize winner's research says about money and happiness. (2024)

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Millennials said in a survey they needed $525,000 a year to be happy. Here's what a Nobel prize winner's research says about money and happiness.? ›

The link between money and happiness. Daniel Kahneman, a Nobel-prize-winning psychologist and economist, has dedicated research to understanding the link between money and happiness. A 2023 study he coauthored found that happiness seemed to improve with higher earnings up to at least $500,000 annually.

In a 2023 study by financial services company Empower, millennials reported needing to earn $525,000 a year to be happy. Notably, this is significantly more than the national median income of that age group, which is approximately $81,000 a year, according to a study by Scholaroo.

Gen Z, Gen X and boomers indicated they only needed a somewhat modest income of $124,000 – $130,000 to be happy, far below the “average” of $284,167 for the entire survey. But millennials greatly skewed the results, requiring a whopping $525,000 per year in income to be happy.

If you were going to invest now in your future best self, where would you put your time and your energy? There was a recent survey of millennialsasking them what their most important life goals were, and over 80 percent said that a major life goal for them was to get rich.

Baby Boomers, for instance, estimate their annual income needs at $124,000 to achieve happiness. In contrast, Millennials contend that a considerably higher annual income of $526,000 is necessary for them to feel a similar sense of joy.

On average, respondents to a new survey said they needed $1.2 million in the bank to be happy. Millennial respondents said happiness would come from a $525,000 annual salary. Nobel prize winner's research suggests that there is a limited link between money and happiness.

Millennials and Gen Z are the unhappiest—but only in America

That top 10 includes all five Nordic countries. Meanwhile, the United States was pushed back to the 23rd spot. But intriguingly, Gallup's report also delves into the factors that impact a population's happiness—and this year, age was a big indicator.

A survey by Wells Fargo found that 29% of affluent millennials (defined as having assets of $250,000 to over $1 million of investible assets) admit they "sometimes buy items they cannot afford to impress others." According to the survey, 41% of affluent millennials admit to funding their lifestyles with credit cards or ...

Yes, it is possible to retire comfortably on $500k. This amount allows for an annual withdrawal of $30,000 and below from the age of 60 to 85, covering 25 years. If $20,000 a year, or $1,667 a month, meets your lifestyle needs, then $500k is enough for your retirement.

Millennials say they need to earn half a million dollars a year to be happy—nearly four times as much as other generations. How much money does it take to be happier? Money may not be able to buy happiness outright, but it sure can help.

Are millennials happier than boomers? ›

Age and generation both matter for happiness. As between generations, those born before 1965 (Boomers and their predecessors) have life evaluations about one-quarter of a point higher than those born after 1980 (Millennials and Gen Z).

The Greatest Generation commonly refers to those Americans who were born in the 1900s through the 1920s. The Greatest Generation members lived through the Great Depression and many of them fought in World War II.

The research found the optimal income for life satisfaction in North America is $105,000 per year. If your income exceeds that amount, it has been found that whatever you make beyond that level is not associated with greater life satisfaction. In fact, it reduces life satisfaction.

Nearly three-quarters (73.2%) of millennials report living paycheck to paycheck. That's the highest of any generational cohort.

The number is down from 2023, where it cited a salary of $145,365 to be happy living in California. California's unemployment rate of 4.7% trails only Nevada in the study. Which states require a higher salary than California in order to be happy? Only Massachusetts and Hawaii.

Just how much money do we need to earn to be happy nowadays? The answer is a bit more than the often cited $75,000 per year. In a 2023 paper published by the Proceedings of the National Academy of Sciences (PNAS) journal, key findings suggest that earnings up to $500,000 boost and buy overall happiness.

The average Millennial salary is about $47,034, according to the U.S. Census Bureau. The average Millennial household makes $69,000 a year, according to the Pew Research Center.