State Farm to non-renew 72,000 policies in California

KTLA

State Farm to non-renew 72,000 policies in California

Iman Palm – March 21, 2024

State Farm to non-renew 72,000 policies in California

State Farm General Insurance Company plans to non-renew about 30,000 property insurance and 42,000 commercial apartment policies in California, the company announced Wednesday.

State Farm, California’s largest insurer as of 2022, said the move would impact 2% of its total policies in the state and was made to ensure “long-term sustainability.”

3D printed fire-resistant home being built in L.A. County

The 42,000 commercial apartment non-renewals represent a complete withdrawal from the commercial apartment market in California. The other 30,000 non-renewals would impact homeowners, rental dwellings, and other property insurance policies, according to State Farm.

The announcement applies to California customers only. The company said those impacted will be notified between July 3 and Aug. 20.

“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations. State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now,” the company said in a statement.

The company also said it will continue working with the Department of Insurance, Gov. Gavin Newsom and other policymakers as they pursue reforms “to establish an environment in which insurance rates are better aligned with risk.”

Can California lure insurers back to the state?

In February, the state’s insurance department announced proposals to reform California’s insurance regulations. The new proposal would allow insurance companies to switch from using historical data to catastrophe modeling, meaning companies would calculate projections of future risk when raising rates and pass on the cost of reinsurance to consumers.

The new changes are expected to take effect at the end of the year.

Last year, State Farm announced it would stop accepting new insurance applications for all business and personal property in California.

Since then, other companies like Allstate have announced similar moves.

State Farm discontinuing 72,000 home policies in California in latest blow to state insurance market

Associated Press

State Farm discontinuing 72,000 home policies in California in latest blow to state insurance market

Associated Press – March 21, 2024

FILE - Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)
Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)
FILE - Residences leveled by a wildfire in Paradise, Calif., are seen on Nov. 15, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)
Residences leveled by a wildfire in Paradise, Calif., are seen on Nov. 15, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)

SACRAMENTO, Calif. (AP) — State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state

The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday.

“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations,” the company said in a statement Wednesday.

“State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws,” it continued. “It is necessary to take these actions now.”

The move comes as California’s elected insurance commissioner undertakes a yearlong overhaul of home insurance regulations aimed at calming the state’s imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas, the news group said.

The California Department of Insurance said State Farm will have to answer question from regulators about its decision to discontinue coverage.

“One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.”

It was unclear whether the department would launch an investigation.

Last June, State Farm said it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.”

The company said the newly announced cancellations account for just over 2% of its California policies. It did not say where they are located or what criteria it used to determine that they would not be renewed.

House Republicans Endorse National Abortion Ban

Rolling Stone

House Republicans Endorse National Abortion Ban

Andrew Perez – March 21, 2024

A caucus representing most House Republican lawmakers endorsed a 15-week national abortion ban on Wednesday. The announcement came one day after former President Donald Trump indicated that he could support a 15-week abortion ban.

The Republican Study Committee (RSC), which includes nearly 80 percent of all House Republicans, released its 2025 budget proposal on Wednesday, titled “Fiscal Sanity to Save America.” Despite being billed as a budget plan, it is a highly ideological document.

“The gift of life is precious and should be protected,” the document states, adding that the “RSC celebrates the Dobbs v. Jackson Women’s Health Organization decision.” In that case, the Supreme Court overturned federal protections for abortion rights, using the 6-3 conservative supermajority that Trump helped create.

The RSC document goes further: It endorses a 15-week national abortion ban, as well as legislation that could eliminate access to in vitro fertilization, or IVF. In an email to reporters Wednesday night, the Biden White House tied the document to Trump, saying that the “Trump Republican budget would ban abortion nationwide [and] rip away IVF access.”

The RSC budget “applauds” a series of “measures designed to advance the cause of life,” including the “Protecting Pain-Capable Unborn Children from Late-Term Abortions Act, which would prohibit abortions after 15 weeks.”

The proposal meshes with comments Trump made Tuesday suggesting he could back a 15-week national abortion ban. “The number of weeks, now, people are agreeing on 15, and I’m thinking in terms of that, and it’ll come out to something that’s very reasonable,” he said. “But people are really — even hard-liners are agreeing, seems to be 15 weeks, seems to be a number that people are agreeing at. But I’ll make that announcement at the appropriate time.”

The budget plan from the RSC also applauds the “Life at Conception Act, which would provide 14th amendment protections at all stages of life.” As CNN reported last month, the bill “does not include a carveout for IVF,” and “reproductive rights activists worry the legislation — if ever passed — would have a chilling effect on IVF clinics.”

The RSC’s support for the Life at Conception Act comes in the wake of a controversial Alabama Supreme Court decision finding that embryos created using IVF are people in the eyes of the law and covered under the state’s wrongful death statute.

Conservative House Republicans unveil plan to attack Biden admin policies. Here’s what they would target

USA Today

Conservative House Republicans unveil plan to attack Biden admin policies. Here’s what they would target

Ken Tran, USA TODAY – March 20, 2024

WASHINGTON – The Republican Study Committee, the largest caucus made up of House Republicans, unveiled a course on Wednesday for dismantling many of President Joe Biden’s signature policies – though the proposal’s chances are slim for now.

As part of the RSC’s annual budget, first shared with USA TODAY, the group is pushing to roll back or loosen many of the Biden administration’s major federal rules and regulations.

Republicans in the group are taking aim at a wide range of policies, including initiates to combat climate change, a Defense Department policy reimbursing travel for service members who must cross state lines to receive abortions and Justice Department gun control regulations. In the budget, Republicans call for a return to former President Donald Trump’s approach during his term in office.

Rep. Kevin Hern, R-Okla., speaks to reporters after dropping out of the race for Speaker of the House, and endorsed Rep. Mike Johnson, R-La., as House lawmakers seek to elect a new speaker in Washington.
Rep. Kevin Hern, R-Okla., speaks to reporters after dropping out of the race for Speaker of the House, and endorsed Rep. Mike Johnson, R-La., as House lawmakers seek to elect a new speaker in Washington.

“The RSC Budget would take bold and necessary action to rein in the Biden Administration’s dangerous regulatory regime, returning to the example set by former President Donald Trump,” the proposal reads, accusing Biden of implementing “a radical” agenda.

The conservative group, led by Rep. Kevin Hern, R-Okla., released their plan after Biden announced a federal budget earlier this month with an eye toward new social programs for housing, health care and child care.

But the budget framework from the GOP group, which comprises almost 80% of the House Republican conference, offers a preview into what policy priorities Republicans are itching to advance should they reclaim the White House, the Senate and hold on to the House.

The budget doesn’t just endorse a slate of GOP-led legislation. It also includes pushes meant to curtail the Biden White House’s executive authority “to restore the appropriate balance of power” between Congress and the presidency.

Included is Rep. Kat Cammack’s Regulations from the Executive in Need of Scrutiny Act, or REINS ACT, that would require Congress to sign off on any rule from a presidential administration that has an economic impact of $100 million or more. The bill passed the House last year on a party-line vote, though it has little chance in the Democratic-controlled Senate.

The proposal also goes after Biden for vetoing a bill passed last year that would have done away with a Labor Department rule for 401(k) plans. The rule allows fund managers to invest the retirement plans in “environmental, social and governance” funds (ESG) if it is in the best interest of the investor.

The funds are typically centered around “socially responsible companies” that focus on addressing environmental and social problems. Republicans have derided the rule as too “woke,” but the rule does not require investment into ESG funds.

Today, the RSC’s proposal is simply a conservative wish list, actions that have little chance of becoming law while Democrats control the Senate and Biden remains in the White House.

But as the presidential election and congressional races across the country pick up steam, the plan could reflect how Republicans are seeking to rally voters in the fall.

“It’s on us to reign in the executive branch and rescind their authority to make decisions that belong to the legislature,” Hern said in a statement to USA TODAY. “Our constituents sent us here to provide a check on the White House. We can’t be passive about it, it’s time for results.”

US economy on solid ground as weekly jobless claims fall, home sales surge

Reuters

US economy on solid ground as weekly jobless claims fall, home sales surge

Lucia Mutikani – March 21, 2024

WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, while sales of previously owned homes increased by the most in a year in February, signs the economy remained on solid footing in the first quarter.

That was underscored by other data on Thursday showing business activity stable in March, though inflation picked up. Even a gauge of future economic activity turned positive in February for the time in two years. The United States continues to outshine its global peers, thanks to labor market resilience.

The Federal Reserve on Wednesday left interest rates unchanged, with policymakers upgrading their growth forecasts for this year and indicating they still expected to lower borrowing costs three times by year end. Economists said the upbeat economic reports made it more unlikely that the U.S. central bank would start cutting rates before June.

“Companies are not laying off workers and the labor market remains relatively strong,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “And now there are signs of life for existing home sales. This makes easing monetary policy at this juncture more problematic.”

Initial claims for state unemployment benefits dropped 2,000 to a seasonally adjusted 210,000 for the week ended March 16, the Labor Department said. Economists polled by Reuters had forecast 215,000 claims in the latest week.

Claims have been mostly bouncing around in a 200,000-213,000 range since February. Despite a flurry of high-profile layoffs at the start of the year, employers have largely been hoarding labor after struggling to find workers during and after the COVID-19 pandemic.

Unadjusted claims decreased 12,730 to 189,992 last week. Applications in California plunged by 5,369, while filings in Oregon fell 2,580. They more than offset notable increases in Michigan and Missouri.

Fed Chair Jerome Powell told reporters on Wednesday he did not see “cracks” in the labor market, which he described as “in good shape,” noting that “the extreme imbalances that we saw in the early parts of the pandemic recovery have mostly been resolved.” The U.S. central bank has raised its benchmark interest rate by 525 basis points to the current 5.25%-5.50% range since March 2022.

The claims data covered the period during which the government surveyed business establishments for the nonfarm payrolls portion of March’s employment report. Claims rose marginally between the February and March survey weeks. The economy added 275,000 jobs in February.

Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, will offer more clues on the health of the labor market in March. The so-called continuing claims increased 4,000 to 1.807 million during the week ending March 9, the claims report on Thursday showed.

“The labor market is gradually rebalancing, but the adjustment appears to be coming from less hiring rather than a surge in firings,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “We expect job growth to slow somewhat but the unemployment rate to remain low this year.”

HOUSING SUPPLY IMPROVES

Stocks on Wall Street were trading higher. The dollar was steady versus a basket of currencies. U.S. Treasury prices fell.

In a separate report on Thursday, the National Association of Realtors said existing home sales jumped 9.5% last month to a seasonally adjusted annual rate of 4.38 million units, the highest level since February 2023. The monthly increase in sales was also the largest since February 2023.

Economists had forecast home resales would fall to a rate of 3.94 million units. Sales were boosted by an improvement in housing supply, with inventory surging 5.9% to 1.07 million units, the highest for any February since 2020. Supply was up 10.3% from one year ago.

Home resales, which account for a large portion of U.S. housing sales, fell 3.3% on a year-on-year basis in February.

The housing market has been battered by the Fed’s aggressive monetary policy stance as it fights inflation, and the signs of improvement in supply, together with retreating mortgage rates, bode well for the spring selling season.

Nonetheless, housing inventory is still well below the nearly 2 million units before the pandemic. Homes in many areas, especially in the Northeast, continue to receive multiple offers, pushing out first-time buyers, who accounted for only 26% of transactions last month.

That share is well below the 40% that economists and realtors say is needed for a robust housing market. A fifth of the homes sold last month were above listing price.

Many homeowners have mortgages with rates below 4%, discouraging them from selling their houses, contributing to the supply crunch and higher home prices. The median existing home price increased 5.7% from a year earlier to $384,500 in February. Home prices increased in all four regions, and could remain elevated with supply still likely to lag demand.

“If broader activity remains strong, a further normalization of home sales and new listings could be an indication that homebuyers are adapting to a higher level of rates,” said Veronica Clark, an economist at Citigroup in New York.

The increase in sales means more brokers’ commissions, which should boost the residential investment component in the gross domestic product report. Goldman Sachs raised its first-quarter GDP growth estimate to a 1.9% annualized rate from a 1.7% pace. The economy grew at a 3.2% rate in the fourth quarter.

The economy’s improving prospects for this year were reflected in a fourth report from the Conference Board showing its leading economic index rebounded 0.1% in February after declining 0.4% in January. That was the first increase since February 2022.

“The economy is poised to continue in expansion mode,” said Priscilla Thiagamoorthy, a senior economist a BMO Capital Markets in Toronto.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama, Paul Simao and Andrea Ricci)

The IRS Is Cracking Down on These High-Income Earners. Are You One of Them?

Smart Asset

The IRS Is Cracking Down on These High-Income Earners. Are You One of Them?

Mark Henricks – March 21, 2024

The IRS building in Washington D.C.
The IRS building in Washington D.C.

The IRS recently announced a major tax enforcement initiative that will increase scrutiny on high-income earners, partnerships and people with foreign bank accounts. The agency said the effort would “restore fairness to [the] tax system” by focusing on wealthy taxpayers who have seen sharp declines in audit rates over the past decade.

Targeting Million-Dollar Earners With Large Tax Debts

At the center of the IRS crackdown are individuals who report over $1 million in income and have more than $250,000 in recognized tax debt. In its Sept. 8 announcement, the agency said it has identified 1,600 taxpayers fitting these criteria who collectively owe hundreds of millions in unpaid taxes.

The IRS described plans to use specialized revenue officers concentrating solely on collecting from these high-end delinquent accounts starting in fiscal year 2024. For those who fall into this segment, expect the IRS to come knocking as early as next year.

The news follows an injection of billions of dollars into the IRS budget from the Inflation Reduction Act. The agency says the added funding will pay the cost of collecting more from wealthy tax cheats, while maintaining low audit rates for people earning less than $400,000 a year. Another goal is to reduce or limit audits of moderate- and low-income taxpayers claiming the Earned Income Tax Credit (EITC).

AI-Powered Large Partnership Audits

The IRS is also significantly expanding examinations of large partnership tax returns. Because their complexity overwhelmed the tax collection agency’s resources and ability to analyze them, these returns have received limited scrutiny historically, according to the IRS. Audit rates for these large partnerships have also declined in recent years as the agency’s funding and staff have shrunk.

By the end of September, the agency plans to change that by opening audits of 75 of the biggest partnerships in the U.S., each with over $10 billion in assets. In October, the IRS will also begin mailing compliance notices to 500 partnerships for unexplained discrepancies in their balance sheets that could potentially trigger audits if not addressed.

The IRS plan calls for using artificial intelligence to analyze these complex returns. The idea is to employ machine learning to detect anomalies and more accurately target non-compliant returns for audit. This, the agency says, will enable more efficient use of limited IRS exam resources on detailed exams of complex partnership returns.

IRS statements on this new initiative stress that it won’t affect taxpayers with moderate and lower incomes. However, no matter what your income, if you hold partnership interests, especially in a large private equity fund, hedge fund or real estate partnership, you may be affected by the new enforcement.

Increased Enforcement on Foreign Financial Accounts
The Amount You Owe box from a 1040 income tax form.
The Amount You Owe box from a 1040 income tax form.

The IRS is also expanding enforcement for failure to disclose foreign bank and financial accounts. By law, you must file a foreign bank account report (FBAR) separately from your return if you have over $10,000 in offshore accounts.

The IRS found filing discrepancies indicating potential non-compliance among hundreds of taxpayers with average account balances exceeding $1.4 million. The agency is planning to audit the most serious FBAR offenders in 2024.

If you have any foreign accounts or assets, pay close attention to FBAR filing obligations. The IRS intends to have more sophisticated means on hand to identify unreported foreign holdings. Penalties for willful failures to disclose required information can be stiff.

Bottom Line

This IRS is expanding its enforcement efforts on high-income taxpayers and large partnerships for which audit rates have plunged over the past decade. If you earn over $1 million, hold interests in major partnerships or have foreign financial accounts, you may be in the IRS’ crosshairs. Even taxpayers who previously have avoided audits may now attract scrutiny from a more endowed IRS. Now more than ever, it’s advisable to tap into qualified tax advice, be proactive about compliance and respond quickly, accurately and completely to any IRS notices in order to minimize potential penalties and interest.

Finland has been crowned the happiest country in the world for the 7th year running. See the top 20.

Business Insider

Finland has been crowned the happiest country in the world for the 7th year running. See the top 20.

Beatrice Nolan and Ana Altchek – March 20, 2024

A woman in Helsinki, Finland
Helsinki, Finland.Lingxiao Xie/Getty Images
  • Finland has been named the world’s happiest country for the seventh year in a row.
  • The World Happiness Report released its annual rankings of the happiest countries on Wednesday.
  • The US fell out of the top 20 as youth happiness plummeted.

Finland has been crowned the happiest country in the world for the seventh consecutive year.

The World Happiness Report released its annual rankings of the happiest countries on Wednesday, with the majority of the top spots going to European nations.

The report, published by the United Nations Sustainable Development Solutions Network, relies on data from the Gallup World Poll, which is analyzed by some of the world’s leading well-being scientists.

The rankings represent the average view of life satisfaction in respective countries, known as “subjective well-being.”

Finland has managed to hold onto the top spot despite Denmark significantly closing the gap between first and second place.

On the flip side, Afghanistan, which was also ranked in last place in 2023, dropped even further for average happiness. America also saw a drop in perceived quality of life, dropping out of the top twenty countries for the first time since the report was published.

Young Americans ranked the lowest, with Gen Z loneliness increasing.

Here’s the full list of the top twenty happiest countries in the world, according to the report.

20. United Kingdom

The London tube.
The London tube.Tim Grist/Getty Images

According to the report, older people in the UK are significantly happier than younger age groups.

Despite the UK maintaining its ranking, a recent report from US nonprofit Sapien Labs’ Mental State of the World Report said that the UK is the second most miserable country in the world. It ranked below Ukraine, and the report indicated that factors like having a smartphone at a young age, eating highly processed foods, and decreased social relationships contributed.

19. Lithuania

Street in Lithuania
A street in LithuaniaRicardo Sergio Schmitz

While it’s No. 19 overall, Lithuania ranked as the happiest country for you people, according to the Gallup report. The country’s capital city, Vilnius, is known for attracting young workers from across the globe because of better work opportunities.

18. Czechia

CZECHIA
A square in Czechia.Courtesy of National Geographic

Czechia maintained its ranking as 18 for the second year in a row. The country is known for its strong work-life balance and low cost of living.

According to the report, growing happiness in Czechia and other transition countries of Eastern Europe, like Lithuania and Slovenia, is partially why the US and Germany have fallen below the top 20 mark.

17. Ireland

Dublin, Ireland.
Dublin, Ireland.Getty Images

Ireland has a slower pace of life and is full of cultural traditions, with drinking being a big one. It also has affordable healthcare and a good work-life balance where weekend getaways are common and encouraged.

16. Belgium

a view of wavre, belgium town hall
Wavre, Belgium.boerescul/Getty Images

Despite a high tax rate, many companies in Belgium offer perks like company cars, meal stipends, and affordable healthcare.

Antwerp, the biggest city in the Flanders region of Belgium, has previously been named one of the happiest cities in the world.

15. Canada

A man wrapped in two Canadian flag parades down an empty street.
A man wrapped in the Canadian flag.Dave Chan

Canada and the UK are the only countries with populations over 30 million that made the top 20 ranking in the report.

Older Canadians are significantly happier than younger age groups in the country. According to a breakdown of younger and older residents in each country, Canadians under 30 ranked 50 points lower than those 60 and older.

14. Austria

a photo of the Vienna, Austria Skyline.
Vienna, Austria.Giannis Alexopoulos/NurPhoto via Getty Images

Many Americans have moved to Vienna and Linz for better work opportunities and overall quality of life. Shortages in engineering, nursing, and baking have opened up opportunities for people living in other countries.

One expat dad living in the country said his overall mental health improved in Austria and the move relieved some of his anxiety related to work. He also gets to travel more easily and spend more time with his family.

Austrians get 38 days of paid time off per year, with 25 days of paid vacation and an additional 13 public holidays off.

13. Kuwait

Kuwait downtown luxury
Downtown Kuwait.trabantos / Getty Images

Kuwait is newly ranked in the top 20 happiest countries. Workers in the private sector get 30 days of paid time off a year, one of the highest amounts of PTO in the world.

12. Costa Rica

Waterfall and pond in Nicoya, Costa Rica.
A waterfall in Nicoya, Costa Rica. underworld111/Getty Images

Costa Rica returned to the top 20 list after earning the same ranking in 2012, according to the Gallup report. Housing isn’t cheap, but some residents save money on utilities and transportation.

Others have reported improved mental health after moving there from the lifestyle and culture that centers around wildlife and nature.

11. New Zealand

Aerial View Of Auckland City's skyline in New Zealand at sunrise
Aerial View Of Auckland City’s skyline in New Zealand at sunrise.Jonathan Clark/Getty Images

According to some Americans who moved to New Zealand, housing costs are high, and buying options are limited. But work-life balance is better, and education and healthcare come at a lower cost.

Despite its high ranking, the report reveals that younger people living in New Zealand are significantly less happy than older residents. A separate list comparing young and older age groups in each country found that Kiwis 60 and older ranked in sixth place in happiness globally, while Kiwis under 30 ranked at 27.

10. Australia

The Sydney Opera House in Sydney, Australia.
The iconic Sydney Opera House in Australia. James D. Morgan/Getty Images

Australia has a reputation for offering one-of-a-kind experiences in nature, like snorkeling with turtles off the Great Barrier Reef or observing kangaroos in wildlife preserves. It’s also known for its laidback culture and relaxing vibe.

9. Switzerland

The Bernina Express train in Switzerland
The Bernina Express train in Switzerland.Roberto Moiola/Getty Images

Switzerland was previously named the world’s best country by US News & World Report, and its business-friendly culture was a big part of the ranking.

Switzerland is a hub for raw materials like oil, and the country may also benefit from its historical stance of neutrality during international conflicts.

8. Luxembourg

Luxembourg city old town
The old town of Luxembourg City.Getty Images

Luxembourg is known for its rich history, tasty pastries, and fairytale aesthetic in some of its villages like Echternach.

According to an American student who moved there for grad school, the lower cost of tuition and cheaper healthcare necessities were a perk. Other notable factors included an efficient transportation system and a strong work-life balance that made a difference for her.

7. Norway

oslo norway
Oslo, Norway.Getty Images

Norway maintained a high ranking in the report, but it also experienced a drop in scores among younger age groups.

While the weather doesn’t bode well for everyone, the country’s capital Oslo has previously been ranked as the best city in the world for work-life balance. Oslo has high employment opportunities in the life sciences, IT, and energy and environmental technology sectors.

6. The Netherlands

Amsterdam, the Netherlands.
Amsterdam, the Netherlands.Mouneb Taim/Anadolu Agency via Getty Images

A large part of Dutch culture lies in the concept of “niksen,” or doing nothing. Dutch residents value relaxation and tend to be friendly and welcoming to others.

The country is also known for its transportation system and Dutch-style home mortgages that make it easier for some residents to buy property.

5. Israel

Jerusalem, Israel
Israel.Nick Brundle Photography/Getty Images

Israel remained in the top five happiest countries in the world, moving down one ranking and 0.9 of a percentage point from last year. While the poll was taken before warfare in Gaza escalated, it was taken after the October 7 attack and hostage crisis.

With men and women joining the military at 18 years old, Israelis value living live in the present. The country also places high importance on community and family life, and less emphasis on work and status.

4. Sweden

Norrbro Bridge and the Royal Opera building in Stockholm, Sweden.
Norrbro Bridge and the Royal Opera building in Stockholm, Sweden.Murat Taner/Getty Images

According to the Gallup report, older Swedish people are significantly happier than younger age groups in the country.

Sweden is known for its high level of safety and strong work-life balance. According to one consultant from California who moved to Sweden, it took two years to secure a full-time job but now she gets six weeks of paid vacation time and also secured a free master’s.

3. Iceland

Seljalandsfoss waterfall in Iceland.
Seljalandsfoss waterfall in Iceland.Phillip Chow/Getty Images

Despite limited sunlight in the winters, Iceland managed to rank in the top three happiest countries for the second year in a row. While rent is rising in Iceland, it’s still cheaper than in other countries, and the cost of living is relatively low with healthcare heavily subsidized and nearly free.

2. Denmark

Copenhagen, Denmark
Copenhagen, Denmark. Alexander Spatari/Getty Images

Denmark is known for its “hygge” culture, which is the Danish concept of relaxing and enjoying simple comforts — the term is used in different settings to reinforce the idea of having fun.

The country is also known for its exceptional childcare, with Copenhagen ranked as one of the best places to raise children.

1. Finland

Market Square and Uspenski Orthodox Cathedral
Market Square and Uspenski Orthodox Cathedral in Finland.Jon Hicks/Getty Images

Finland has a strong sense of democracy, and its public institutions and policies reinforce it.

Some attribute the high satisfaction of its residents to its welfare policy, which covers necessities for residents from “cradle to grave.” The policy offers free healthcare and free education from elementary school to college.

The U.S. is no longer one of the 20 happiest countries. If you’re young, you probably know why.

NBC News

The U.S. is no longer one of the 20 happiest countries. If you’re young, you probably know why.

Yuliya Talmazan – March 20, 2024

Happiness is a relative concept, but an annual index that tracks it in countries around the world has found that the United States and some Western European countries are falling in overall well-being because younger people are feeling less and less happy.

The U.S., in particular, dropped out of the top 20 for the first time, falling to 23rd place from 15th last year, driven by a large drop in the well-being of Americans under 30. The age disparity is stark: The U.S. ranks in the top 10 for those over 60, but for those under 30, it ranks 62nd, pulling down the overall score.

The report tracks trends in well-being rather than causes, but one of the editors of the report told NBC News that a myriad of factors, including economic inequality between generations in the U.S., are likely to blame for the low levels of happiness in American youth.

This makes the U.S., along with a handful of other countries, such as Canada, Germany and France, the global outliers — the report found that in many regions of the world, the young are still happier than the old.

The findings, announced Wednesday to mark the United Nations’ International Day of Happiness, are part of the World Happiness Report, which has been tracking well-being ratings around the world for more than a decade. It’s based on data collected by the research company Gallup and analysis by well-being academics led by the University of Oxford in the U.K.

Tuska 2023 (Vesa Moilanen / Sipa USA via Reuters file)
Tuska 2023 (Vesa Moilanen / Sipa USA via Reuters file)

For the first time this year, the report gave separate rankings by age group, which in many cases vary widely from the overall happiness rankings for different nations. The report found that Lithuania topped the list for people under 30, while Denmark is the world’s happiest country for those aged 60 and older.

“We had picked up in recent years from scattered sources of data that child and youth well-being, particularly so in the United States, had seen a drop,” said Jan-Emmanuel De Neve, professor of economics and behavioral science at Oxford, who is one of the editors of the report. “That has pushed us for the first time to really slice and dice the data by these age categories, which we normally don’t do.”

The finding that in many but not all regions of the world, the young are still happier than the old, is consistent with the long-standing paradigm that people are the happiest in their younger years.

“To my surprise, youth well-being going off a cliff in the United States and North America, and to a lesser extent in Western Europe and Great Britain, is really explaining why the United States, Canada and the U.K. are getting lower and lower in the general population rankings,” De Neve said. “So that’s really explaining it because it’s not the case that the middle-aged or the people that are above 60 are dropping. If anything, the above 60s in the U.S. would be No. 10.”

Well-being for people under 30 in the U.S. ranks below the Dominican Republic, and is in line with countries such as Malaysia and Russia. Canada’s unhappy youth rank 58, four spots above the U.S.

When it comes to the tanking youth happiness in the U.S., De Neve said there is not a single smoking gun, but it is likely due to a combination of many factors ranging from political polarization to overuse of social media to uncertainty about the future and growing economic inequality between generations, with people under 30 struggling to get onto the real estate ladder.

“It’s a very complex time for youth, with lots of pressures and a lot of demands for their attention,” he added.

Meanwhile, the report also found that in countries of central and Eastern Europe, younger people are much happier than the old. But these countries have also seen the largest increases in happiness, for all ages. It was one of the biggest insights, De Neve said, that could be a big learning point.

“I think we can try and dig into why the U.S. is coming down in terms of wellbeing and mental health, but we should also try and learn from what, say, Lithuania is doing well,” he said.

The rankings are based on self-assessments by people in more than 140 countries, in which they rate their life on a scale from zero to 10, with the best possible life for them as a 10. Among the predictors of people’s happiness are not just economic well-being, the report says, but also other factors including freedom, life expectancy and social support.

This year, Finland remained on top of the list, and was followed by Denmark, Iceland and Sweden. The lowest happiness scores were registered in war-ravaged Afghanistan.

The consistently high performance of Scandinavian nations is likely down to “a high sense of contentment” and high levels of trust in the society, De Neve said.

“They are obviously wealthy nations,” he added. But more than the high gross domestic product per capita, he said, wealth is also equally distributed, “they are amongst the most equal societies, so everybody benefits from the wealth that also underpins a welfare state, which provides psychological stability.”

US falls out of world’s top 20 happiest countries list for the first time ever

The Guardian

US falls out of world’s top 20 happiest countries list for the first time ever

Maya Yang – March 20, 2024

<span>Among people below the age of 30 from 2021 to 2023, the US ranks 62nd place in the World Happiness Report.</span><span>Photograph: Saul Loeb/AFP/Getty Images</span>
Among people below the age of 30 from 2021 to 2023, the US ranks 62nd place in the World Happiness Report.Photograph: Saul Loeb/AFP/Getty Images

The US has fallen out of the top 20 happiest countries to live in for the first time ever, according to a new report.

In findings released on Wednesday, the World Happiness Report revealed that the US has slid from its 15th place last year to 23rd place this year.

Related: Young people becoming less happy than older generations, research shows

The report, created via a partnership involving Gallup, the Oxford Wellbeing Research Centre, the UN Sustainable Development Solutions Network, and the World Happiness Report’s editorial board, pointed to happiness decreasing in all age groups for the US. It also found a significant decline among young people, who are now the least happy age group.

“This is a big change from 2006-10, when the young were happier than those in the midlife groups, and about as happy as those aged 60 and over. For the young, the happiness drop was about three-quarters of a point, and greater for females than males,” the report said.

Among people below the age of 30 from 2021 to 2023, the US ranks 62nd in happiness. Meanwhile, among those who are 60 and above, the US ranks 10th.

“In comparing generations, those born before 1965 are, on average, happier than those born since 1980. Among millennials, evaluation of one’s own life drops with each year of age, while among boomers life satisfaction increases with age,” according to a summary of the report.

Finland, for the seventh straight year, has been ranked the world’s happiest country. It is followed by Denmark, Iceland, Sweden and Israel. The least happy country is Afghanistan, the report said, followed by Lebanon, Lesotho, Sierra Leone and the Democratic Republic of the Congo.

The report’s rankings are not based on any index of factors including GDP per capita, social support, healthy life expectancy, freedom, generosity and corruption. Instead, the scores are based on individuals’ own assessments of their lives, according to researchers.

U.S. Falls Out of Top 20 Happiest Countries for the First Time Ever

Time

U.S. Falls Out of Top 20 Happiest Countries for the First Time Ever

Solcyré Burga – March 19, 2024

Credit – Illustration by TIME; Getty Images (2)

For the first time in the World Happiness Report’s dozen-year history, the U.S. did not rank in the top 20 of the world’s happiest countries.

Out of the more than 140 nations surveyed, the U.S. landed in 23rd place, compared to 15th place in 2023. While the U.S. is still in the top 10 happiest countries for those 60 years old and above, its overall ranking fell due to a significant decline in the reported well-being of Americans under 30.

Finland ranked at the top of the list for the seventh year in a row. Lithuania is the happiest country in the world if you only look at those under the age of 30, while Denmark is the happiest country for people who are 60 and older.

This was the first year the report, released March 20 to mark the UN’s International Day of Happiness, analyzed rates of happiness by age group. “We found some pretty striking results,” said John F. Helliwell, professor at the Vancouver School of Economics and founding editor of the World Happiness Report. “There is a great variety among countries in the relative happiness of the younger, older, and in-between populations. Hence the global happiness rankings are quite different for the young and the old, to an extent that has changed a lot over the last dozen years.”

The findings were developed through a partnership between Gallup, the Oxford Wellbeing Research Centre, the World Happiness Report’s editorial board, and the United Nations’ Sustainable Development Solutions Network. Countries are ranked based on a “three-year average of each population’s average assessment of their quality of life,” the press release said.

The most recent report relies on data that was collected after the start of the COVID-19 pandemic, with survey respondents answering questions from 2021-2023.

According to the report, people born before 1965 are, on average, happier than people born after 1980. Millennials report drops in their life satisfaction with every year they grow older, while boomers’ happiness increases the older they get.

Globally, people between the ages of 15 and 24 typically report greater life satisfaction than older adults. But the 2024 report finds that the gap is shrinking in Europe, and has reversed in North America. The data contrasts with reports of life satisfaction between 2006 and 2010, when the younger generation in North America were just as happy as older folks.

“Social connections could be one factor explaining the generational happiness differences,” says Ilana Ron Levey, Gallup Managing Director. “Different generations have different levels of social connections and we know social support and loneliness affect happiness. The quality of interpersonal relationships may affect the young and the old differently.”

In Central and Eastern Europe, Ron Levey notes, younger people tended to report higher levels of happiness than older people, in part because of social connection. But the data differs elsewhere in the world, including in the U.S. Last May, the U.S. Surgeon General brought attention to the public health crisis of loneliness and isolation, calling it an epidemic. A previous report by the American Psychological Association found that Gen Z adults reported higher stress levels than older generations, with health and finances cited as top concerns.

Across the Middle East, North Africa and South Asia, the wellbeing of 15-to-24-year-olds has also fallen since 2019.

“Piecing together the available data on the wellbeing of children and adolescents around the world, we documented disconcerting drops especially in North America and Western Europe,” said Jan-Emmanuel De Neve, the director of Oxford’s Wellbeing Research Centre and an editor of the report. “To think that, in some parts of the world, children are already experiencing the equivalent of a mid-life crisis demands immediate policy action.”