After a brief review of the major concepts and propositions of the social-psychological theory of exchange, a view of aging as exchange is developed. Drawing upon the previous work of Blau and Emerson, problems of aging are seen as problems of decreasing power resources. Because power resources decline with increased age, older persons become increasingly unable to enter into balanced exchange relations with other groups with whom they are in interaction. From this view, the process of disengagement is the result of a series of exchange relations in which the relative power of the aged vis-à-vis their exchange partner increasingly deteriorates. An imbalanced exchange ratio consequently results in which the aged are forced to exchange compliance—the most costly of all generalized reinforcers—for their continued sustenance. The retirement phenomenon is specified as illustrative of the aging as exchange process.