In this article, I present a framework for understanding the impact of aging-related declines in cognitive resources on functioning. I make the assumption that aging is associated with an increase in the costs of cognitive engagement, as reflected in both the effort required to achieve a specific level of task performance and the associated depletion or fatigue effects. I further argue that these costs result in older adults being increasingly selective in the engagement of cognitive resources in response to these declines. This selectivity is reflected in (a) a reduction in the intrinsic motivation to engage in cognitively demanding activities, which, in part, accounts for general reductions in engagement in such activities, and (b) greater sensitivity to the self-related implications of a given task. Both processes are adaptive if viewed in terms of resource conservation, but the former may also be maladaptive to the extent that it results in older adults restricting participation in cognitively demanding activities that could ultimately benefit cognitive health. I review supportive research and make the general case for the importance of considering motivational factors in understanding aging effects on cognitive functioning.