Following a discussion of different approaches to the definition of 'competence' and their theoretical background, the need for both situation-specific and global conceptualizations of this construct is stressed. Aside from competencies for physical and social survival, those related to psychological survival should be considered. A battery of indicators of competence, as used in the Bonn Longitudinal Study on Aging (BOLSA), was helpful in identifying six groups of elderly people with different levels of competence in the range of 'normal' aging. Cognitive and personality variables most significantly differentiated the competence groups. On the basis of these findings, the value of complex competence models and the need for situation-specific and person-specific assessments of competence is stressed.