Decoding others’ intentions accurately in order to adapt one’s own behavior is pivotal throughout life. Yet, it is a process that is imbued with uncertainty since others’ intentions are not directly observable and may change over time. In this study, we asked the question of how younger and older adults deal with uncertainty in dynamic social environments. We used an advice-taking paradigm together with biologically plausible hierarchical Bayesian modelling to characterize effects and mechanisms of aging on learning about others’ time-varying intentions. We observed age differences when comparing learning on two levels of social uncertainty: the fidelity of the adviser and the stability of intentions. We found that, prior to having any experience with the adviser, older adults expected the adviser to change his/her intentions more frequently. They also showed higher confidence in such beliefs and were less willing to change their beliefs over the course of the experiment. This led them to update their predictions about observable outcomes (i.e., advice correctness) more quickly. Potentially indicative of stereotype effects, we also observed that older advisers were perceived as more volatile, but at the same time, more faithful than younger advisers. Together these findings offer new insights into the behavioral and algorithmic mechanisms underlying adult age differences in response to social uncertainty, putatively driven by aging-related changes in neuromodulation to be tested in future studies.