An analysis of the differences in the degree of retirement satisfaction was made, with respect to place of residence, perception of mental health and perception of physical health. The sample size consisted of 744 retired individuals who were part of a state-wide probability sample of 1133 residents of the state of Wyoming, age 60 and over. As previous research had shown, retirement satisfaction was related positively the perception of physical health and perception of mental health. The surprise finding was that retirement satisfaction was not related to place of residence at the zero-order level, but did, indirectly, affect retirement satisfaction. The key variable was perception of mental health in leading to retirement satisfaction with one's perception of physical health being affected by one's perception of mental health. (Author)