Over the last decade, much research has been conducted to investigate why older listeners report more difficulty in understanding spoken language than would be expected given their degree of audiometric hearing loss. Of particular relevance to audiological rehabilitation is recent research on older listeners when they are engaged in complex tasks involving the auditory processing of naturalistic signals in realistic social and physical environments Discourse epitomizes such activity. By understanding age-related and individual differences in perceptual and cognitive performance, we gain important insights into how hearing impairments influence activity and participation in context. In this paper, the problems of older adults as communicators in everyday life are illuminated by studies showing that auditory processing problems affect cognitive processing. Age-related problems in understanding spoken language are exacerbated by perceptual stressors such as noise and by cognitive stressors such as memory load. It is argued that the significance of these processing problems during discourse depends on social-emotional factors Therefore, goals for new signal-processing technologies designed for older adults who are hard of hearing can be framed not only in terms of improving signal audibility but also in terms of reducing stress on the listener during information processing. Furthermore, goals for therapeutic interventions can be framed in terms of reducing stress during information processing by modifying behaviors and physical and social environments to achieve the listener's goals.