Understanding warnings is important, regardless if prior knowledge with respect to such information exists. The goal of the current study was to investigate younger and older adults' ability to draw inferences under different conditions of prior knowledge, and how confident participants were about their decisions. Participants read two-sentence text passages, which either resembled real warnings (real) or were the opposite of real warnings (reversed). Participants evaluated whether information in a given statement was consistent (true) or inconsistent (false) with information given in a text passage. Statements either repeated information explicitly or implied in the text passage. Participants also rated their confidence in the correctness of their answer. Data showed no age-related differences in accuracy when the text passages resembled real warnings. When text passages were reversed, older adults were less accurate than younger adults, yet more confident when inferences were required.