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The aging of intelligence features a paradox including both growth and decline in performance, as well as latent potential and aging-related limits to further growth. Two resolutions to the paradox are offered. First, because of the dual-process nature of intelligence—fluid mechanics versus crystallized pragmatics—there is the possibility of differing life-span trajectories characterized by a decline in the mechanics and select growth in the pragmatics. Second, because of the facilitative and enriching effect of knowledge-based pragmatics, highly effective cognitive performances in old age are possible despite an aging-related loss in cognitive mechanics. A model of selective optimization with compensation is presented to elucidate various interventional strategies that allow for intellectual efficacy and growth despite increased biological vulnerability and decreased intellectual reserve capacity. A visionary social policy for old age needs to recognize this double-edged nature of the aging mind: limits and potential.