AIMS The programme of research had two main aims: (1) to examine the relationships between objective financial status, subjective financial well-being, psychological well-being and physical health in later life, and (2) to examine the extent to which people aged 40 years and over are able and willing to prepare for their financial well-being in old age. DESIGN These aims were addressed during two separate research phases. Phase 1 consisted of two studies (1) an in-depth interview study and (2) a postal survey. Phase 2 comprised an indepth interview study. SETTING The programme of research was conducted in the West of Scotland. Both Phase 1 and Phase 2 interview studies were restricted to interviewees residing in Renfrew district. The Phase 1 postal survey covered a more extensive geographical area, encompassing three additional local government districts (Argyll and Bute, Dumbarton & Inverclyde). PARTICIPANTS Respondents were randomly selected from the Argyll and Clyde Health Board Community Health Index (CHI). Additional interviewees for the Phase 1 interview study were obtained through Renfrewshire Elderly Fora. Eighty-four individuals were interviewed in Phase 1 and a further 279 respondents completed postal questionnaires. Eighty-two interviewees participated during Phase 2. RESULTS Phase 1 found that social comparison processes largely mediate the relationship between objective and subjective financial well-being. Although subjective financial well-being was related to psychological well-being, objective financial status was not independently associated with psychological health. Both objective and subjective financial well-being were positively related to physical health. Phase 2 found that most respondents placed high importance on adequate financial resources and the need to plan for retirement. However, great diversity in planning behaviour was observed. Few respondents had considered provision for long-term care. CONCLUSIONS This research has demonstrated the association between financial well-being and psychological and physical health. Further research is needed to decipher the complex causal pathways through which financial well-being influences both the quality and quantity of life. It is strongly advocated that future studies include broader more comprehensive measures of financial well-being.