This paper estimates the causal effect of retirement on health using Regression Discontinuity Design and instrumental variables. Age serves as an assignment variable for the RDD estimation and eligibility for a state pension is used as an instrument for retirement. Self-reported health status and the physical and mental sum-mary score of the SF12 measure are used as dependent variables. The results show an increase in subjective health and mental health. There is evidence for effect heterogeneity with respect to gender, education and job satisfaction.