This study focused on two factors that may affect the life satisfaction of elderly people in Taiwan-living arrangements and ownership and control of economic resources. Based on data from “2011Taiwan Longitudinal Study on Aging”, this thesis shows that while living with spouse or children, as compared to living alone without spouse, has a positive impact on elders’ self-evaluation of life satisfaction, having enough economic resources to cover current and future living expenditures have even a greater positive effect. It is suggested that ensuring economic security should be on the top priority of any policy regarding elderly people’s life sastifaction.