A team of researchers from Linköping University (Sweden), the European University Institute (Italy), and the University of Amsterdam (Netherlands) has challenged the idea that intelligence leads to the highest levels of financial success.
The researchers found that the wealthiest people, who are a tiny fraction of the population, scored significantly worse on cognitive ability tests than their less affluent counterparts. Once someone reaches very high wealth, intelligence stops being a key factor in getting richer — other forces come into play, the team reported to Science Alert.
In other words, exceptional cognitive ability ceases to matter for the ultra-wealthy beyond a certain point. Intelligence matters more for people with more modest means who are still trying to climb the income ladder.
Background, Luck, and Fortune – Other Keys to Financial Success
The new research suggests that being at the top of the wealth ladder doesn’t necessarily mean someone is exceptionally intelligent.
This conclusion runs counter to the common belief that high wealth comes primarily from intelligence and talent. The researchers also highlighted the role of background, family connections, personal traits, and luck.
The team analyzed the test results of 59,387 middle-aged Swedish men. They worked in various fields, held different positions, and had varying levels of financial well-being. The sample did not include women and did not consider participants’ nationality.
The researchers discovered that the correlation between cognitive abilities and wealth was stronger when respondents earned less than 60,000 euros per year (about $64,400). As incomes rose above that threshold, intellectual ability stopped being a key factor in reaching higher financial levels. In fact, the cognitive skills of the very wealthy were no better than those of people earning relatively modest incomes.
In simpler terms, once people achieved noticeable material success, cognitive abilities no longer played a significant role in further enrichment.
The team also found that the wealthiest 1% of men often had the lowest cognitive scores compared with other participants.
A World of Inequality, Where the Super-Rich Keep Getting Richer
But the findings don’t mean intelligence and hard work don’t affect future earnings. Rather, at the highest levels of financial success, different mechanisms take over.
The team also emphasized that cognitive abilities and the prestige of a profession do not always predict high levels of wealth.
The researchers said their work matters in a world where the super-rich keep amassing wealth and gaining influence over political, social, and economic affairs.
The study, published in the European Sociological Review, was partly motivated by growing attention to global inequality. Ultimately, the researchers found no evidence that people with immense wealth are more deserving than those with far less, at least on intellectual measures.
Photo credit: Leonardo DiCaprio in “The Wolf of Wall Street”/Paramount Pictures
