This paper compares the development of functional health, subjective health and well-being among elderly people living at home in two regions of Switzerland. The comparison between 1979 and 1994 indicates a significant improvement both of functional health status and of subjective well-being. In both regions the proportion of handicapped elderly persons or of elderly persons with depressive symptoms has declined. A major factor for this developmentare improving socioeconomic conditions for younger cohorts of the elderly population.