Speech comprehension deficits constitute a major issue for an increasingly aged population, as they may lead older individuals to social isolation. Since conversation requires constant monitoring, updating and selecting information, auditory working memory decline, rather than impoverished hearing acuity, has been suggested a core factor. However, in stark contrast to the visual domain, the neurophysiological mechanisms underlying auditory working memory deficits in healthy aging remain poorly understood, especially those related to on-the-fly information processing under increasing load. Therefore, we investigated the behavioral costs and electrophysiological differences associated with healthy aging and working memory load during continuous auditory processing. We recorded EEG activity from 27 younger (∼25 years) and 29 older (∼70 years) participants during their performance on an auditory version of the n-back task with speech syllables and 2 workload levels (1-back; 2-back). Behavioral measures were analyzed as indices of function; event-related potentials as proxies for sensory and cognitive processes; and theta oscillatory power as a reflection of memory and central executive function. Our results show age-related differences in auditory information processing within a latency range that is consistent with a series of impaired functions, from sensory gating to cognitive resource allocation during constant information updating, especially under high load.