OBJECTIVES: The influence of financial status on life satisfaction is well discussed among economists. In contrast, population surveys indicate that general health is viewed by most subjects as key contributor to life satisfaction. We therefore aimed at analyzing the reciprocal impacts of morbidity and economic status on life satisfaction as a health outcome variable. METHODS: In 2007, two representative adult samples of the Kantar Health European Healthcare Panel in Germany and UK were surveyed (n=72.605) and self-reports on 22 chronic diseases (12-month-prevalences summed up to a multimorbidity score) and household income (net household income in GBP) were collected. In 2012, a subsample of 4.008 individuals was re-contacted and participants completed a health status and a validated life satisfaction questionnaire (IZA LSQ) with five domains: Life as a whole, work, social contacts, income and health (Kapteyn et al. 2008). The five-year impact of multimorbidity and income on life satisfaction was estimated using a stepwise multiple linear regression model, considering age and gender as confounders. RESULTS: Multimorbidity and income were moderately but significantly correlated with general life satisfaction (linear regression beta-coefficients: beta=0.26 resp. 0.25; p<0.01). Correlations with the outcome categories satisfaction with work, social contacts, income and health were also positive (beta coefficients between 0.15 and 0.40; all p<0.01). All effects were independent of age and gender. As expected, disease status had the greatest influence on satisfaction with health (beta=0.40) but also on satisfaction with work and functional capacity (beta=0.25). CONCLUSIONS: The results demonstrate specific, independent but complementary impacts of health status and income on life satisfaction and its domains. The impact on societal resource allocation decisions is being discussed: Optimal population based life satisfaction might require combining health care and economic improvements.