This paper reflects on social theories of ageing and their relation toward the institution of retirement. Social changes analysed signify the changes in relationship between society and individuals during the process of their aging. These changes are seen through different levels of activity, interaction and roles older people play in the society. Authors show to what extent is the construction of age and the institution of retirement under influence of economical, structural and cultural aspects of a speciffic society. In so doing, they support a modified concept of age which in modern society becomes more complex, equally due to longer life expectancy and changes in lifestyle. Retirement itself is approached to as an institution, process and experience with emphasis placed on the context which shapes it. There is a widely spread myth of unproductivity and inactivity of older people upon retirement, i.e. leaving the labour market, which frequently represents a basis for their social exclusion and marginalization. Opposing this, the authors present theoretical approaches and results of empirical researches that deal with the concept of productive ageing, preserving and (or) developing certain activities in older age with aim to maintain an active life style. The concept of productive ageing subsumes the multiple contributions of older individuals to their personal wellbeing as well as that of their communities and society as a whole.