This analysis of the relationship between receipt of an employee pension and happiness among retired men and women suggests that the relationship is the result of the effect of pension receipt on total income, as well as other variables which impact on or are related in a noncasual way to pension receipt. It appears that there is nothing intrinsic to receiving regular behefits from an employee pension based on prior contributions to the world of work which has an effect of the happiness of retired persons. These findings should not be construed to mean that the source of a retired person's income has no impact under any circumstances on his psychological well-being. They only mean that the particular source of income selected for study here, an employee pension, has no impact on psychological well-being as measured by happiness. Receipt of an employee pension may have an impact on other facets of psychological well-being which are not measured here. Alternatively, income sources other than an employee pension may have psychological effects. (Author)