Life in the Happiest Country: A Financial Comparison of Finland and the UK
Why Finland Is the Benchmark for Happiness
According to the latest World Happiness Report published by Oxford University, Finland has claimed the title of the happiest country in the world for an astonishing eighth consecutive year. What's even more striking? The United Kingdom is trailing far behind at 23rd place. With an average life satisfaction score of 7.7 out of 10 in Finland versus a mere 6.7 in the UK, it raises an important question: What factors contribute to Finland’s renowned happiness, and how does it compare to life in the UK?
A Closer Look at Happiness Ratings
While Nordic nations dominate the top tier—Denmark, Iceland, and Sweden follow closely at 2nd, 3rd, and 4th places respectively—the UK has dropped three places since last year, overtaken by countries like Slovenia and Mexico. At the bottom of the list, we find Afghanistan as the unhappiest country, followed by Sierra Leone and Lebanon.
What Makes Finns Happy? Key Factors to Consider
Experts point to several core reasons why Finns consistently report higher well-being:
1. Work Culture
“The work culture is undeniably better,” says Kjartan Kelly, a personal trainer who migrated from Cardiff to Tampere in 2020. He attributes this to better wages, superior workers' rights, and enhanced work-life balance.
Generous Leave Policies: Each parent in Finland is entitled to nearly 23 weeks of paid leave, a stark contrast to the UK’s two-week paid paternity leave for fathers.
Efficiency Over Hours: Finnish employees typically work smartly, wrapping up their day by 4 PM, leaving ample time for family and leisure.
2. Wealth Distribution
The economic disparity affects happiness more than raw numbers:
According to the International Monetary Fund, the UK’s GDP totals around $3.73 trillion, while Finland's stands at $319.99 billion. Despite this, the average earnings illustrate a more favorable distribution in Finland.
Jan-Emmanuel De Neve, editor of the World Happiness Report, notes that the UK's high average income is skewed by a small fraction of ultra-wealthy individuals.
3. Welfare System
Higher Taxes for Greater Good: Finnish citizens pay higher taxes, with VAT at 25.5% compared to the UK's 20%. This is perceived positively as it funds a comprehensive welfare system that wraps around citizens in times of need.
Education as a Right: In Finland, education, including university level, is free for EU citizens, promoting access and equality.
Comparing Costs of Living
While many Brits find the cost of living in Finland surprisingly lower compared to the UK, experiences vary greatly:
Housing Costs
When relocating back to the UK, Darren Trofimczuk was taken aback by housing prices. Finding a one-bedroom flat in London cost him over £1,000/month, equivalent to paying a mortgage on a three-bedroom home in Finland.
Renting vs. Buying: The average price per square meter in Finland sits between £2,174 to £4,130 for new builds, while UK pricing is estimated around £2,857 per square meter based on 2019 averages.
Utilities and Groceries
Interestingly, the cost of energy and food between both nations is somewhat comparable. However, transportation expenses lean higher in the UK. For instance, a 500-mile train journey in Finland costs around £18.50, while commuting from Tunbridge Wells to London could set you back £31 for a mere 34 miles.
The Takeaway: Happiness or Wealth?
It’s evident that while both Finland and the UK exhibit strong GDP figures, true happiness stems from a balanced approach that prioritizes well-being and community support over mere financial gains.
Given these insights, potential moves or investments in either country may require weighing not just economic factors, but also the qualitative elements that contribute to overall happiness. If you're considering where to lay down roots or invest, remember: Finland might offer not just a better cost of living, but an approach to life that emphasizes fulfillment and satisfaction.
For more insights on financial well-being, check out this World Happiness Report.
