20 March is International Day of Happiness, established by the UN to promote change that drives happiness and wellbeing around the globe.
As part of the initiative, the UN publishes a World Happiness Report, investigating the various factors that affect whether people in different countries are content. The report also ranks countries based on their happiness score and in 2025, Finland was top of the list for the eighth year in a row.
In anticipation of the next report, let’s review the last instalment and consider some of the key drivers of wellbeing in 2026 and beyond.
1. Social connection is vital for wellbeing
Several of the findings from the 2025 World Happiness Report focused on the value of social connection and the link to our wellbeing.
The researchers explored how often people ate meals with family and friends. The levels of communal dining varied significantly in different countries, and the results of the study showed that sharing meals was a strong indicator of wellbeing.
Additionally, the number of people in your household can affect your satisfaction levels. The researchers found that those living alone experienced lower levels of happiness.
Meanwhile, those living in a household of around four people had “abundant and very satisfactory” relationships, leading to higher levels of happiness.
Interestingly, this correlation does have a limit. The study revealed that those in much larger households could experience lower levels of happiness, likely due to financial issues caused by a large number of dependants.
Despite this, the results from the World Happiness Report highlight the importance of spending time with loved ones on a regular basis. This is something you may want to consider because social interaction can often fall by the wayside when you have a busy work and personal schedule.
Setting aside time to eat dinner with your family or socialise with friends regularly could make a marked difference to your overall contentment in life.
2. Helping others can improve your overall happiness levels
Another important finding is that helping other people also benefits you by improving your wellbeing.
The researchers considered how an increase in prosocial behaviour – volunteering, donating to charities, helping others – contributes to the overall happiness of societies. To measure the real-world impact of this kind of behaviour, the study considered the number of deaths related to mental health issues or substance abuse, called “deaths of despair”.
The data shows that there is a clear link, and a 10% increase in people engaging in prosocial behaviour led to a decrease of 1 death of despair per 100 each year.
This suggests that in countries where people are actively engaged in supporting local communities and helping others, instances of serious unhappiness are reduced.
You might incorporate this kind of behaviour into your own life by donating to charities or perhaps you may consider volunteering in your retirement.
3. Being selective about the charities you support amplifies the wellbeing benefits
The evidence shows that giving to charity could have a meaningful effect on your happiness. However, the report also found that your choice of charity is crucial.
This is because the happiness benefits are not equal for all charities. Researchers considered how much happiness was created per dollar donated to various causes, and the results may surprise you.
Researchers suggest that some charities are hundreds of times better at increasing happiness than others. This may be because you can see more meaningful effects from the money you give and therefore, your happiness is amplified.
That’s why it’s important to be selective about your philanthropic efforts. Consider what causes are most important to you and which charities will deliver the most meaningful change. By creating a charitable legacy that is tailored to your own priorities in life, you may reap more benefits in terms of your happiness.
When gifting wealth, there are also important tax and estate planning implications to consider. This is where we can help. Discussing your philanthropic goals with a financial planner first can ensure that you support causes close to your heart while also enjoying certain tax benefits.
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Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning or tax planning.