This study examines differences in life satisfaction between full retirees and working retirees in Europe. We hypothesize that these differences depend on the financial resources of retirees and the resources available in the household and country context. We selected retirees from the ‘Survey of Health, Aging and Retirement in Europe’ project and estimated country fixed effects models to explain their life satisfaction. The results indicate a positive relationship between working after retirement and life satisfaction for retirees with low pension income without a partner. Additionally, working after retirement seems to be most important for life satisfaction in relatively poor countries.