Younger and older adults read narrative texts word by word for immediate re
call. There were no age differences in recall performance, showing that old
er adults were effective in narrative memory. Analysis of reading times dem
onstrated the existence of interindividual variability in sensitivity to te
xt demands, which was predictive of subsequent memory performance. Contrary
to the view that older readers do not encode text analytically, for these
naturalistic narratives both younger and older adults optimized memory thro
ugh the allocation of processing resources to the construction of a proposi
tion-based representation of content. Overall, attentiveness to narrative s
tructure also facilitated narrative memory, but this relationship was more
reliable among older readers.