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Australia is the happiest place to live.

The country has retained top spot in the Organisation for Economic Cooperation and Development's annual Better Life Index. The OECD ranks the world's developed economies according to 11 different criteria it views as essential to a happy life.

Related: Australia hasn't suffered a recession in 24 years

Australians enjoy low pollution and high levels of personal security. They rank top in civic engagement, and above average in health, housing, social connections, and income.

The downside? Australians find it difficult to strike a balance between work and life. They work some of the longest hours in the developed world, and devote the least time to leisure and personal care, the OECD said.

First published June 4, 2015: 10:09 AM ET
Source: OECD: Better Life Index

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