The primary purpose of this study is to construct a path model in which shows how the background variables, retirement-related variables, and perceptions of stress in retirement influence life satisfaction among retirees. Data from a probability sample of retirees who are not employed as a full - time (n of retirees=261)are used. The social stress model, developed by House (1974) and George (1980), presented and tested in this research focuses on the perspective of the retirees. The major findings are: 1. The retirees perceive relatively high levels of stress in retirement. 2. Levels of living standard, health status, and locus of control are significant factors in differentiating the degrees of perceived stress in retirement and life satisfaction. 3. Concerning the retirement variables, the previous job satisfaction, plans and preparatins for leisure activities and financial arrangement contribute to differentiate the degrees of perceived stress in retirement and life satisfaction. 4. While health status, locus of control, and the perceptions of stress in retirement influence directly on life satisfaction, age, education, income, and activity level influence indirectly through the retirement - related variables and the perceptions of stress in retirement on life satisfaction. The significant impact of the perceptions of stress in retirement upon life satisfaction receives strong support.