Money supposedly cannot buy happiness, but it is an imperative means to achieving higher living standards, and something the countries with the highest quality of life index all tend to have in common is that they are wealthy nations. Just what is the quality of life index? It’s a formula that factors in a number of different variables to determine the livability of a country, giving a single figure that represents each nation’s general ability to provide a quality life for its inhabitants.
As you’ll see, the quality of life index shows us the total living standards, all of which are dependent on money in some way. It is an estimation of overall quality of life in a particular country by using an empirical formula, which is that quality of life index = 65 + purchasing power and rent index - (price to income ratio × 2) - (CPI index ÷ 5) + (safety index × 0.75) + (public health index ÷ 2) - (traffic time index ÷ 2) - pollution index. The number 65 is a range modifier that it rarely goes below.
The Economist Intelligence Unit has published the 2014 ranking of the countries with the highest quality of life index, and we wanted to report on these findings and compare them to our previous list of the Top 20 Countries With The Best Quality of Life. As you’ll see, the formulas are quite different between the two lists, and unsurprisingly, so are the results. Whereas that list focused on life expectancy, education, and income levels, our newest list takes a much deeper look at each country’s entire infrastructure.
Let’s take a look at the countdown now of top ten countries with the highest quality of life index, and see within which borders the pursuit of happiness is easiest.
10. Austria
Quality of Life Index: 171.82
Annual net household income: $28,852
Austria has a well-developed social market economy with a high rate of education and a strong sense of community among its people.
9. United Arab Emirates
Quality of Life Index: 173.27
Annual net household income: $28, 880
With a huge number of working opportunities in this oil-rich emirate, the UAE has successful expat communities that appreciably outnumber the local population, an exciting lifestyle with lots of opportunities for shopping and entertainment, and an extremely safe environment where crime and theft are very infrequent.
8. Australia
Quality of Life Index: 175.98
Annual net household income: $28,884
Australia is the number one happiest country in the world and is number eight in the list of countries with the highest quality of life index. It is a wealthy country with a prosperous market economy, a relatively high GDP per capita, and a relatively low rate of poverty.
7. Canada
Quality of Life Index: 178.29
Annual net household income: $28,194
The working opportunities in Canada provide a high quality of living and the country is a peaceful and friendly place to live. It ranks seventh, because of the high quality of education, government transparency, civil liberties, and economic freedom.
6. Denmark
Quality of Life Index: 178.55
Annual net household income: $24,682
Denmark has a high standard of living and ranks highly in numerous comparisons of national performance, including education, health care, protection of civil liberties, democratic governance, prosperity, and human development, with a modern, prosperous, and developed mixed market economy.
5. Finland
Quality of Life Index: 178.88
Annual net household income: $25,739
Finland has a high level of life satisfaction, high education rate and a highly industrialized mixed economy.
4. Sweden
Quality of Life Index: 180.92
Annual net household income: $26,242
Sweden has a prosperous market economy, and a relatively high GDP per capita with regular growth of real estate markets. The people lead a high quality of life in Sweden, and have good quality of education, health care, and safety facilities. They have also ranked highly in all environmental categories as a pollution-free country.
3. Germany
Quality of Life Index: 192.69
Annual net household income: $30,721
As a global leader in several industrial and technological sectors, Germany is a developed country with a very high standard of living, featuring comprehensive social security that includes a high quality of education, life safety, government transparency, pollution control, and health care systems.
2. United States
Quality of Life Index: 195.55
Annual net household income: $38,001
The United States has the highest average net household income on the list, at $38,000 per year. Besides providing high living standards, it also ranks as one of the best countries for housing conditions, with good fundamental facilities and general feelings of safety and personal liberty.
1. Switzerland
Quality of Life Index: 206.23
Annual net household income: $30,060
While it only came in at number nine on our previous list, Switzerland ranks number one on our newest one. It has a stable, prosperous and high-tech economy with all the best facilities for high quality living standards. It has also the maximum nominal wealth per adult, eighth-highest GDP per capita, second-highest life expectancy and is first in economic and tourist competitiveness in the world.
