Australia’s sunny disposition seems to have taken a bit of a hit, as the latest World Happiness Report reveals that the land Down Under has slipped from its coveted position in the top 10 happiest countries in the world. It’s a surprising turn for a nation known for its laid-back lifestyle and stunning natural beauty. But before we delve into the details, let’s take a moment to understand what happiness means in this context and why it matters to us, especially for those of us in the over 50s bracket who are looking to make the most of our golden years.
The World Happiness Report is an annual publication that ranks global happiness in terms of various life factors. It’s a comprehensive survey that takes into account the opinions and experiences of over 100,000 people across more than 140 countries. The survey asks respondents to imagine their life as a ladder, with the top rung representing the best possible life and the bottom the worst. Participants then rate their current life on this scale. The results are averaged over three years to provide a more stable and accurate picture of a nation’s happiness.
After making it into the top tier in 2024, Australia now holds 11th place in the rankings, with New Zealand following closely at 12th.
So, what’s behind Australia’s drop to the 11th spot, just shy of the top 10, with our Kiwi neighbours nipping at our heels in 12th place? It’s a complex question, but the report offers some insights. This year, it highlighted the significant impact of caring and sharing on happiness. It turns out that kindness—both perceived and received—plays a crucial role in how we feel about our lives. Interestingly, the report found that people often underestimate the kindness of others, which can affect their overall happiness.
The ‘kindness bump’ observed during the COVID-19 pandemic is a testament to the resilience and compassion of communities during tough times. However, as we emerge from the pandemic, it’s worth considering how we can sustain and nurture this benevolence in our everyday lives.
Looking at the top of the list, the Nordic countries continue to dominate the happiness rankings, with Finland, Denmark, Iceland and Sweden maintaining their positions in the top four in the same order. This year’s top 20 includes two Latin American nations, with Costa Rica securing sixth place and Mexico ranking 10th, along with one Middle Eastern country, Israel, which sits in eighth place. Overall, the report indicates that Western industrial nations are now less happy compared to the period between 2005 and 2010. For the first time, none of the major industrial powers made it into the top 20.
Back in 2013, all of the top 10 happiest countries were Western industrial nations, but now only seven remain. Among the countries that have dropped out of the top 10 between 2013 and 2025 are Switzerland (ranked third in 2013, first in 2015, and now 13th in 2025), Canada (sixth in 2013 and now 18th in 2025), and Australia (10th in 2013 and now 11th in 2025).
Here are the top 10 happiest countries in the world for 2025:
- Finland
- Denmark
- Iceland
- Sweden
- The Netherlands
- Costa Rica
- Norway
- Israel
- Luxembourg
- Mexico
While Australia’s slip in the happiness rankings may come as a surprise, it also presents an opportunity to reflect on what truly shapes our well-being. From social connections to economic stability, many factors play a role in how we perceive happiness.
What do you think influences happiness the most? Have you noticed any shifts in community spirit or quality of life in recent years? Share your thoughts in the comments below—we’d love to hear your perspective.
Also read: Australia improves on global corruption rankings, but there is still work to be done
People are being hammered insistently about how terrible everything is by the media and right-wing politicians to try and gain advantage to be the next government.
This negativity is producing a vibe that false as many things are better compared to when Labor won the last election. The economy is far better than what was predicted by the coalition government and Australia is no longer in a per capita recession.