Aim: This study examines how childhood difficulties are associated with late‐life depression. Using the concept of agency within the structure of the life course perspective, this study investigates how subjective income satisfaction in adulthood plays a role in the relationship between adulthood objective income and late‐life depressive symptoms among older adults who have experienced childhood difficulties. Methods: Using data from two waves (2006, 2021) of the Korean Welfare Panel Study (N = 1822), we identified respondents with and without childhood difficulties, and performed a series of hierarchical zero‐inflated Poisson regression models. Results: Childhood difficulties (β, 0.07; 95% confidence interval [CI], 0.04–0.11), adulthood low income (β, 0.17; 95% CI, 0.13–0.21), and low income satisfaction (β, 0.16; 95% CI, 0.12–0.21) are associated with an increased level of depressive symptoms in late life. In the context of the association between objective income level and late‐life depressive symptoms, the buffering effect of income satisfaction in adulthood was found among the respondents who had experienced childhood difficulties (β, 0.22; 95% CI, 0.09–0.34). Conclusions: Childhood difficulties are a critical risk factor impacting late‐life psychological well‐being. How an individual subjectively evaluates his or her economic status in adulthood plays a major role in mitigating the negative impact of childhood difficulties on late‐life health inequality. Interventions to reduce the risk of childhood difficulties and their negative long‐lasting impact may alleviate individuals' exposure to depression in late life. Geriatr Gerontol Int 2024; 24: 246–252. [ABSTRACT FROM AUTHOR]