Cover Researchers found that acts of generosity and trust in others are positive contributors to happiness (Photo: Nathan Dumlao / Unsplash)
Researchers found that acts of generosity and trust in others are positive contributors to happiness (Photo: Nathan Dumlao / Unsplash)
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The newly released study on happiness also presents the happiest countries in the world
What truly makes people happy? The World Happiness Report 2025 provides a clear answer: kindness and social trust are among the most powerful drivers of life satisfaction. In the new study, released on World Happiness Day on March 20, researchers found that acts of generosity and trust in others contribute more to well-being than, say, income growth.
A striking example is the “lost wallet experiment”, which revealed a truth: believing that a stranger would return your lost wallet predicts happiness more strongly than avoiding financial struggles or even crime.
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People are kinder than we think
Yet, many people underestimate the kindness of those around them. The report finds that actual wallet return rates are nearly twice as high as people expect—especially in countries with high social trust.
For instance, in a Canadian lost wallet study, respondents estimated a 23 per cent return rate, yet in reality, over 80 per cent of wallets were returned. A 40-country study echoed this finding, showing that actual wallet return rates were 1.8 times higher than expected. This widespread misperception likely dampens collective happiness, particularly in countries lower on the happiness scale.
Shifts in global happiness rankings
For the eighth consecutive year, Finland has ranked as the world’s happiest country, followed by its Nordic neighbours, Denmark, Iceland and Sweden. However, the 2025 report highlights a major shift: for the first time, none of the world’s largest industrialised nations ranks in the top 20 for happiness, highlighting a broader decline in well-being among Western economies. This suggests that happiness is driven by more than just economic prosperity—factors like social trust, strong community bonds and a sense of security play an even greater role.
Notably, the United States has dropped to 24th place, its lowest ranking to date. The decline is linked to rising loneliness and political polarisation, reflecting deeper societal challenges.
In Asia, Taiwan lands at 27th place, followed by countries such as Singapore (34th), Vietnam (46th), Thailand (49th), the Philippines (57th) and Malaysia (64th). While these rankings indicate room for improvement, they highlight regional strengths: social cohesion, family bonds and resilience can counterbalance negative factors like economic challenges.
The key to happiness is connection
The growing happiness divide between regions reinforces a clear message: happiness is not just about money—it’s about relationships, trust and community. Strong social bonds act as a buffer against life’s challenges, yet loneliness is on the rise. In 2023, 19 per cent of young adults globally reported having no one to rely on for social support—a 39 per cent increase since 2006.
Despite these challenges, the report offers actionable ways to increase happiness. Giving is most fulfilling when: it strengthens social connections, is voluntary rather than obligatory and creates a meaningful impact for both the giver and recipient.
This year’s happiness report leaves us with a hopeful takeaway: we can all move closer to the happiness enjoyed by the world’s happiest nations by always leading with kindness.
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