Objective This study describes hours in paid work for Australian men and women aged over 65, focusing on associations between work and education. Methods Data were analysed separately for men and women, from baseline and first follow‐up surveys of the 45 and Up Study. Generalised estimating equation models were used to identify associations between work, education and other factors over time. Results The odds of doing paid work increased with higher education level and decreased with time, age, poorer physical function and having health conditions (high blood pressure, diabetes, stroke and breast cancer). Un‐partnered women were more likely to work in later life than partnered women. Conclusion This study quantifies the importance of education and health factors in determining continued participation of Australian men and women in paid work in later life. These factors need to be considered for policies aiming to increase workforce participation beyond 65 years of age.