The report took into account 25 different factors within housing, income, jobs, community, education, environment, civic engagement and health to give a rough indication of well-being within each OECD country.
It concluded that the UK's high environmental quality, our social engagement, personal security and the chance for engagement with civic society was where it really excelled among developed countries. The UK was also in the top 20% of performers when it came to work life and wealth.
However, it did not do so well when it came to education or how satisfied we were with our own lives but it did beat the OECD average on both these counts.
How countries were measured
As mentioned above there were 25 different factors taken into account for each country that were then divided into 11 separate dimensions: education, work-life balance, subjective well-being, housing, health-status, income and wealth, jobs and earnings, civic engagement, personal security, social connections and environmental quality.
The education dimension, for example, looked at the following factors: educational attainment, student skills and years in education.
In each of these factors the country was given a red, yellow or green light. A red light indicated that they were in the bottom 20% of OECD countries, a green indicated they were in the top 20% and a yellow showed that they were somewhere in-between.
Using this traffic light system the UK was among the best performing countries, joined by the Nordic European countries, Canada, New Zealand and Australia.
The United States, Ireland, Germany, France and Japan were among countries that amassed a lot of yellow lights while Turkey, Greece, Brazil and Mexico were in the group with an overall low performance.
The UK: good at communicating
While British people may perceive themselves as over-polite and discreet, we are one of the nations with the best quality of social connections, according to the report.
Using data from the 2012 Gallup world poll, the report showed that 95% of people in the UK say they have friends that they can count on. Only Iceland and Ireland perform better at 98% and 96% respectively.
This put the UK five percentage points above the OECD average and 22 percentage points above the worst performing country Turkey where 23% of people did not think they had friends to count on.
Perhaps surprisingly the UK did particularly well when it came to measuring civic engagement given that only 66% of the eligible population voted in the last general election, six percentage points fewer than the OECD average.
The reason it did so well was the consultation on rule-making that exists in the United Kingdom. The UK's score in this measure was 11.5, compared to the OECD average of 7.3. This score was based on a series of questions asked to public officials in each country.
Despite it involving the expenses scandal, the period between 2007 and 2011 saw British faith in public institutions and democracy grow quite tangibly. 47% of British people said they trusted the government in 2011 compared to 36% in 2007.
A happy environment
The United Kingdom, along with Iceland, were the best performing countries when it came to water quality. 97% of people in both countries appreciated the quality of the water that they had access to, which was 13 percentage points better than the OECD average.
Russia performed the worst in this category with just 49% of people happy with the water they had access to.
The UK also did noticeably better than the OECD average when it came to the other environmental factor: air pollution.
Measuring the effect of the financial crisis
The financial crisis has hit the average British person much less hard than it has for those in other OECD countries, according to the report's authors. While disposable income dropped by an average of 2% in European countries between 2007 and 2011, it grew, albeit marginally, by 1% in the United Kingdom.
However, the picture was much worse when it came to equality in the UK with market income inequality (before taxes and transfers) growing by 2% during the period, compared to the 1.2% OECD average. Both unemployment and long-term unemployment grew by almost 2% in the period too.
Despite the UK being, according to the report, one of the best countries for well-being, people do not think they are doing amazingly well here. The UK comes just above the OECD average on the life satisfaction index but way below Nordic countries such as Sweden.
However, the percentage of people declaring themselves very satisfied with their lives has actually increased during the financial crisis from 63% to 64%.
Why well-being is difficult to measure
The well-being of people has always been difficult to gauge, especially when choosing what to factor as more important. Many people, of course, will view their disposable income as more important to well being than their water quality.
There are also huge discrepancies when it comes to well-being for people in different sectors of society. For example, women do much worse than men in the UK on measures such as employment rates but are generally more satisfied with their lives than men. Similar discrepancies exist between the young and the old.
Do you think you have high-levels of well being in the UK? How did your own country fare? Let us know in the comments below or tweet us or on Twitter.See also: