This chapter reports on psychologists traditional approach to the study of memory and the results of the research. It talks about some of the newer findings on memory, including studies of reserve capacity, plasticity, expertise, and memory in everyday life. The chapter contains fluid and crystallized intelligence and the changes that take place in each of these with age. It provides the research on wisdom in later life and the concept of developmental intelligence. The chapter describes the research on mental potential, including research on improving mental potential through practice, training, and mental exercises. It also describes the different approaches to the study of creativity and the outcome of research on creativity in later life. The chapter focuses on the potential for self-development in later life and the challenges to the self as a person ages. It includes the key concepts of the life course perspective on aging and explain the importance of the approach.