The present study examined the way retirees perceive retirement and continue to work post-retirement. Using a longitudinal design, qualitative and quantitative analyses were performed to examine the effect of preoccupation with work on adjustment to retirement. The findings indicate a wide range of attitudes toward cessation of the working life on the eve of retirement. In addition, most retirees reported increased well-being and decreased distress one year after retirement. Although for all participants a correlation was found between adjustment and preoccupation with work on the eve of retirement, no difference in the adjustment measures emerged a year later between those who were fully retired and those who continued to work. The implications of the findings for both personal well-being and social policy are discussed. (Contains 3 tables and 1 figure.)