Although global declines in structure have been documented in the aging human brain, little is known about the functional integrity of the striatum and prefrontal cortex in older adults during incentive processing. We used event-related functional magnetic resonance imaging to determine whether younger and older adults differed in both self-reported and neural responsiveness to anticipated monetary gains and losses. The present study provides evidence for intact striatal and insular activation during gain anticipation with age, but shows a relative reduction in activation during loss anticipation. These findings suggest that there is an asymmetry in the processing of gains and losses in older adults that may have implications for decision-making.Over the past several decades, scientists have made rapid progress toward determining the effects of aging on cognition. Both behavioral and neuroimaging studies show that there is a strong negative relationship between age and cognitive performance across many types of tasks 1,2 . However, a growing body of research also suggests that many affective abilities do not decline with age, and that in some cases they may improve. Accumulating behavioral evidence suggests that older adults perform relatively better on tasks that involve the processing of emotional stimuli 3 . Socioemotional selectivity theory postulates that age-related attempts to optimize emotional well-being 4 generate increased positive emotional experiences and/or decreased negative emotional experiences over the life span 5 . To date, however, very few neuroimaging studies have focused on changes in emotion with age 6,7 , with only one prior study examining changes in incentive processing over the life span 8 .Studies of brain structure and chemistry provide some evidence for age-related decline. These studies have specifically shown significant structural atrophy of the caudate, insula and prefrontal cortex, as well as global declines in dopamine receptors in the striatum and the