International Day of Happiness: What could we learn from Bhutan?

Category: News
A child laughing as she lays on some grass

20 March 2022 marks the United Nation’s (UN) International Day of Happiness. After two years of challenges due to the Covid-19 pandemic, looking after your wellbeing has never been more important.

The annual International Day of Happiness is a global celebration to promote the idea that happiness is a fundamental human goal and calls for “a more inclusive, equitable and balanced approach to economic growth that promotes happiness and wellbeing of all peoples”. When you think about countries that promote happiness, Bhutan may not spring to mind, but the country is leading the way in putting happiness ahead of economic growth.

GDP vs GNH

GDP (Gross Domestic Product) is an acronym you’re probably familiar with. It refers to the monetary value of all finished goods and services within a country over a certain period. It’s used to provide an economic snapshot and to measure growth. GDP is often reported in the news and used as a barometer of how well a country is doing.

In 1972, the King of Bhutan said: “Gross National Happiness (GNH) is more important than Gross Domestic Product.” But the concept goes back much further. Bhutan’s ancient legal code of 1629 states that: “If a government cannot create happiness for its people, then there is no purpose for the government to exist.” The code set out to create a flourishing society rather than just economic progress.

Since the 1970s, GNH has been used to guide policy and measures in Bhutan. The concept encourages a focus on sustainable development that gives the wellbeing of the population equal importance to economic growth. However, measuring happiness is no small task. How do you measure, track, and compare emotional states? Bhutan created a GNH index, which includes nine domains:

  1. Psychological wellbeing
  2. Health
  3. Education
  4. Time use
  5. Cultural diversity and resilience
  6. Good governance
  7. Community vitality
  8. Ecological diversity and resilience
  9. Living standards

Across these domains, there are 33 indicators, and the index is decomposable by demographic characteristics so it can be broken down further. For example, the index could be used to show whether certain geographical locations or age groups are falling behind in education. Over the years GNH has evolved and is now defined as a “multi-dimensional development approach for seeking to achieve a harmonious balance between material wellbeing and the spiritual, emotional, and cultural needs of society”. It’s been used to place happiness and wellbeing at the centre of Bhutan’s decision making.

The GNH Index doesn’t mean that Bhutan is the happiest country in the world, but it leads the way in pushing wellbeing to the forefront of decision making and giving it equal importance to economic factors. It’s something that many other countries could learn from, and it has lessons for individuals too.

How do your goals reflect what makes you happy?

When you’re making decisions and setting out goals, how far do you consider your happiness or what will bring you joy? And how do you measure it?

According to a report from Aegon, just 4 in 10 people have considered what gives their life joy and purpose. While it may seem strange to set out what brings you happiness, it can help you focus on what’s really important to you and guide your decisions. It could be spending time with your family, getting outdoors, or investing in a hobby. So, next time you’re thinking about how to spend your time or what to spend your money on, asking “will this improve my happiness?” can help boost your wellbeing.

For example, while you may be thinking of splashing out on a new car, will this add to your enjoyment? For some, the answer will be “yes”, but for others, using that money elsewhere can bring more fulfilment to their life.

Setting out what brings you happiness in life can also help you effectively plan for the long term. It can mean you’re able to work towards larger plans, such as travelling or retiring early. Planning for the long-term can help you get more out of life, improve your wellbeing, and have confidence that you’ll reach the goals that will add to your overall happiness.

What our clients say

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Colin, Nottingham

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We have been with Lifeplan for a few years now. Kate has been brilliant in helping us understand our level of risk and planning for retirement. Before we spoke to Kate, it was always something we would just say we’d get around to at some point! It’s really important to have a plan and I feel more secure about our finances now.

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June, Northumberland

A client since 2016

I have more in my pot now than when I retired 11 years ago, even though I joined at the beginning of the banking crisis.”

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I have had nothing but the best advice from Kate Boon over the last 12 years, in relation to mortgages, investments and financial planning for later life. She’s always down to earth in her approach, but very knowledgeable and a real professional.

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Lifeplan is an approachable and plain-speaking business. They are always there to help and assist, as well as provide annual reviews of my current finances and what can be changed to benefit me in readiness for retirement.

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A client since 2011

Kate is my financial consultant and has put a lot of work into my investments recently, making it very clear how it has been invested and where. This appears to be honest, up-to-date advice from someone who clearly knows the markets. I receive a pleasant, friendly service, in a nice modern office also.

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Lifeplan provides a friendly, professional service at reasonable cost. They are very responsive to any request I make and keep my portfolio of investments in line with my ongoing requirements. In 12 years of using Lifeplan, I have never had cause for concern.

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A client since 2006

Gary and Kate have been excellent in understanding our needs and requirements and have given first class advice. They have helped with our financial planning and setting up a trust to ensure our wishes for the future will be met. Nothing is too much bother for them and they provide an excellent service. My wife and I would happily recommend them.

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A client since 2014

When I retired, I wanted my capital to work for me. I was looking for a reasonable but realistic return on investment, but without a high risk. Lifeplan have provided me with just that. I have an annual review, where we have a frank discussion about current arrangements and any changes that Lifeplan may recommend. There is no jargon and things are explained in an understandable way. Plus, they are thoroughly nice people.

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A client since 2015

I found Gary and Kate very easy to speak to. They listen to your concerns and wishes, then give you the best options on how to invest moving forward. Their choices are always explained to you in understandable terms.

Edward, Hexham

A client since 2014

We have always been given helpful advice in a most professional manner. Every detail was explained fully in a way that was easily understood. We would have no problem in recommending Lifeplan to anyone wishing to invest.

Lisa, Newcastle Upon Tyne

A client since 2011

I'd tried several advisers prior to being introduced to Gary and was not happy with their service. Gary was instrumental in organising our pension information, so that we could understand what we were paying in to and why. Sounds easy, but we have had three previous advisers from some of the largest banks that could not do this. Since meeting Gary, we have successfully transferred our pension fund and original property in to a new scheme. In addition to this, Gary has successfully helped our company purchase a new property through our pension.

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A client since 2013

Gary sorted out my pension by tailoring it to my own specific requirements. Until then, it was with large organisations and I really felt out of control with it. He explained technical financial terms well and I felt that he was not happy until he knew I fully understood all aspects of the business. There was no pressure from him and I always felt very confident that he was doing the best he could do on my behalf. He is fully qualified, takes pride in his job and in my opinion is impeccably trustworthy. His team is also very efficient, keeping me advised on all aspects of our business.

Henry, County Durham

A client since 2009

I was looking for financial planning and not just financial advice. Gary explained options in an easily understandable way and offered an alternative way of looking at the impact on different financial models. Initial advice was exactly what I wanted, and I am satisfied that the options I have now chosen are based on sound advice. I have decided to become a long-term client. What myself and my wife wanted was someone whom we felt we could trust with giving impartial advice on our future financial situation, and this we feel we have achieved with Gary

Colin, Nottingham

A client since 2016

I was recently widowed and wanted to simplify my financial affairs for my children should anything happen to me. Gary was very understanding of my needs and dealt with me patiently and in a simple way. I believe the products he recommended will benefit me.

H Walker, Newcastle Upon Tyne

A client since 2016

I contacted Kate to review my pension arrangements, with a view to changing my then pension provider. She helped and advised me on what I currently had, and helped find something better for my current and future needs. Obviously, it’s too early to say, but Kate clearly explained and showed me on the software what my pension could be like when it comes to retirement under various scenarios.

Richard, County Durham

A client since 2008

Redundancy required a re-think of my finances and future planning. Gary set up an investment portfolio following a detailed discussion, including provision of advice that met our needs. I am very pleased with the overall return over the last six years, balanced against the level of risk we were prepared to take.

Brian, County Durham

A client since 2012

Gary has developed a structured plan to ensure our funds will last in retirement. We are now deciding when to retire or reduce to part-time employment.

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A client since 2010

We made an appointment to discuss the remortgage of properties. Kate understood our requirements and personally sorted the process in a very professional way from the start to a successful conclusion. She dealt with all matters, no matter how small.

Jim, County Durham

A client since 2016

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