This study examined the effects of computer anxiety and computer knowledge on self-efficacy and life satisfaction within the retired older adult computer users. Participants consisted of older adults (aged 53–88) recruited from computer clubs in Florida. Path analysis revealed that computer use helped to increase self-efficacy and lower computer anxiety thereby increasing overall life satisfaction. Gender differences in computer use were also examined. Males and females used computers at about the same rate but females reported more anxiety and less computer knowledge. Furthermore, more males reported using the Internet. Of those who reported using the Internet, more females reported browsing for health- and hobby-related information. The implications of these findings were discussed.