Long-term memory can improve when incoming information is congruent with known semantic information. This so-called congruence effect has widely been shown in younger adults but age-related changes and neural mechanisms remain unclear. Here, congruence improved recognition memory in younger and older adults (i.e. congruency effect), but -importantly -this effect decreased with age. Electroencephalography data show that, in both groups, congruence led to widespread differences in event-related potentials (ERPs) and alpha-beta oscillations (8-30 Hz), known to support semantic processing. Importantly, these ERP differences predicted increases in memory performance, especially for congruent items. Finally, age-related differences in memory were accompanied by a positive ERP and later decrease in theta-alpha (5-13 Hz) during encoding, which were greater in the younger group. Together, although semantic congruence generally increases long-term memory, the effect is less pronounced in the elderly. At the neural level, theta-alpha oscillations, previously linked to memory and attentional processes, provide a mechanistic explanation for such an age-related effect.