In recent years, the employment rates of people of pension age have increased considerably. However, longitudinal evidence on the effects of this employment on wellbeing which might contribute to an evaluation of this late-life work is scarce. Based on empirical findings so far and on theoretical approaches to wellbeing, work and retirement, both negative and positive effects of post-retirement work on life satisfaction are plausible. In this paper, we investigate the effects of taking up work again between the ages of 65 and 75 on life satisfaction in different occupational classes in Germany and the United Kingdom. We expect that not only the heterogeneous conditions and experiences of working are crucial for the consequences that post-retirement work has for life satisfaction, but also the institutional arrangements surrounding this form of work. We use data from the German Socio-Economic Panel and the British Household Panel Survey, covering the 1990s and 2000s. Based on fixed-effects regression modelling, we find positive effects of working in both countries, although not all effects are significant. Differentiating by the class of the job in which the older person works, we find mainly positive effects and no significant differences between those who work in a lower-class job and all others. In addition, we find that the positive effect of working on life satisfaction is partly explained by increased satisfaction with household income for those working in a lower-class job in the United Kingdom. We conclude that many of the pessimistic assumptions about people working after pension age cannot be confirmed for our time of observation. However, there are several reasons for believing that the results will be different in the future or for differently defined populations of people working past pension age.

In this paper, relationships between old age, retirement and social inequalities, as marked by participation in leisure activities, are examined. Two issues are tackled: first, whether old age and particularly the transition into retirement have an effect on participation in three selected activities; and second, whether the social inequalities underlying these activities change with older age and retirement. The empirical investigation uses data from the first two waves of the English Longitudinal Study of Ageing (ELSA), which included variables on having a hobby, being a member of a club, and an index of participation in cultural events (cinema, theatre/opera/classical music performances, museums and galleries). The different socio-economic backgrounds of different age groups explain a considerable part of the observed age differences in these activities. Longitudinal analyses show that respondents tended to continue their activities regardless of changes in work and age, with two exceptions, namely that retirement was positively related to having a hobby, and those who stopped working because of an illness experienced a significant decline in all three of the examined categories of activity. The pattern of continuity also applied to socio-economic differences in patterns of participation in leisure activities. Some indications of slightly growing inequalities with age require further investigation.