“Relationship between Wealth, Income and Personal Well-being, July 2011 to June 2012”

Summary
This article uses data from the Wealth and Assets Survey (WAS) for July 2011 to June 2012
which, for the first time, included measures of personal well-being. It describes the results of
regression analysis considering the relationships between the total wealth or total income of
the households in which individuals live and their personal well-being. Regression analysis is
a statistical technique which was used to analyse variation in well-being outcomes by specific
characteristics and circumstances of individuals while holding all other characteristics equal.
This allows for a better understanding of what matters most to an individual’s personal well-being
compared to analysis when different factors are considered separately.
Main points
• An individual’s level of personal well-being is strongly related to the level of wealth of the
household in which they live. Life satisfaction, sense of worth and happiness are higher, and
anxiety less, as the level of household wealth increases.
• The levels of household income are less strongly related, with relationships found only with life
satisfaction and sense of worth.
• The net financial wealth of the household appears to be the type of wealth most strongly
associated with personal well-being. In particular, life satisfaction will be higher in households
with greater net financial wealth.
• Levels of property wealth and private pension wealth were not found to be related levels of
personal well-being.

Source