Aim To examine the effects of work participation, intergenerational transfer and savings on life satisfaction of community‐dwelling older Malaysians. Method Data from the 1999 Survey on Perceptions of Needs and Problems of the Elderly on older persons aged 60+ were used. The life satisfaction score is constructed based on the 10 questions adopted from Life Satisfaction Inventory‐A by Neugarten, Havighurst and Tobin. Multiple regression analysis is used to estimate the expected level of life satisfaction. Results Controlling for other variables in the model, respondents who provided and received assistance to/from children, with savings have significantly higher life satisfaction compared to their counterparts, while work participation does not have any significant effect on life satisfaction. Conclusion Intergenerational transfer and savings are important predictors of life satisfaction. The interdependence between generations should remain and savings habit needs to be cultivated to ensure a higher life satisfaction in old age.