Abstract
We investigate the effect of volunteering and pensions on subjective well-being (SWB) of elderly using wave 6 of Survey of Health, Aging and Retirement in Europe (SHARE). This is the first study to consider volunteering and pensions simultaneously as a determinant of SWB among elderly across countries. We find that the effect of volunteering on SWB varies widely across countries. In some countries both effects are comparable, in other countries pensions have larger effect on SWB. In general, effects are larger in South and East. High European pensions may be unsustainable in the long run -- we argue that promotion of volunteering is one way to increase elderly subjective well-being amidst tightening budgets. The study is cross-sectional and correlational -- we do not claim causality.