The Great East Japan Earthquake of 11 March 2011 had a devastating impact on the north‐eastern part of Japan. In the quasi‐experimental situation, using panel data collected 6 months after the earthquake, the present study examines the causal effects of the disaster on both the economic and psychological well‐being of elderly survivors affected by the earthquake and tsunami. The results by difference‐in‐difference estimation show that there was a significant impact on expenditure and employment, but little significant impact on subjective well‐being or health. The impact on well‐being and health of survivors may have been mitigated by the early economic recovery.