Findings by the Institute of Economic Affairs show that happiness levels correlate with the amount of wealth a person accumulates. And, in contrast to popular belief, it does not level off when the assets reach a certain threshold…

The theory, conceived in 1974 by wellbeing expert Richard Easterlin, claimed that happiness stagnates when income rises beyond a certain level.

And two years ago, a study at Princeton University claimed to have found that wellbeing stopped increasing at £58,700 – with an increase of as much as a third making little difference.

But the report, The Pursuit of Happiness, condemns the theory as a ‘myth’ and ‘fake’. It argues a 20 per cent rise in income has the same impact on wellbeing irrespective of how much wealth the person has initially.