The influence of socioeconomic circumstances on senior citizens' health is still controversial. We used data from the 1998 Brazilian National Household Survey (PNAD 1998) to examine this influence. A representative sample of the Brazilian population aged > or = 65 years (n = 19,068) were included in the study. The characteristics of those in the lower quintile of per capita household income were compared with those with higher income (< 0.67 vs > or = 0.67 the Brazilian minimum wage). The lower income group presented worse health conditions (self-rated health, inability to perform routine activities due to a health problem, bedridden conditions, and a report of any disease), and worse physical functioning (level of difficulty in performing selected physical activities), and less frequent use of medical and dental services. These results do not confirm observations, in some developed countries, of a lack of association between socioeconomic status and health among the elderly. On the contrary, according to our results, in Brazil even small differences in income are sufficiently sensitive to identify older adults with worse health conditions and limited access to health services.