Self-report research has inconclusively linked complaints of poor memory functioning, memory performance, and intellectual ability with depression in older adults. In order to investigate more conclusively the correlation between these variables as well as to investigate the effect of age differences, 159 older adults (49 young-old, aged 55-70; 60 old-old, aged 71-84) were administered a battery of memory, intelligence, and depression scales. Memory was assessed through immediate and delayed recall tests as well as with subscales of the Metamemory Questionnaire. Intellectual ability in terms of recognition vocabulary, figure rotation, and letter/word series (adapted from the Primary Mental Abilities Tests on verbal meaning, space and reasoning) was assessed by corresponding subtests of the Adult Mental Abilities test. Depression was measured by the Zung Depression Scale. An analysis of the results showed that older people who complained of memory problems had high levels of depression. Further, the bidirectional relationship that ensued between affect and cognition points to the circular pattern that develops between memory and depression once the first causal step is taken. Finally, the heterogeneous lifestyle of young-old adults (55-70) appeared to be related to the differences in psychological functioning in this age group. By contrast, old-old adults (71-84) appeared to be more homogeneous because of the commonalities of old age. (Figures illustrating variable linkages are appended). (BL)