The impact of income on life satisfaction

Average life expectancy is increasing in almost every county in the world and will most likely continue to rise (Oeppen et al., 2002). With the current pension system this will mean that people who are now working will most likely not get the money they where promised when they retire. What will the impact of this be on life satisfaction? This research tries to find the infl ence of income on life satisfaction. This is done by means of an ordered logit regression.The data used is from the Survey of Health, Ageing and Retirement in Europe (SHARE). The conclusion of this research is that belonging to a low income group has a significant negative infl on life satisfaction and belonging to a high income group has a significant positive influence on life satisfaction.