Purpose: A new literature has suggested that speech rate can influence the parsing of words quite strongly in speech. The purpose of this study was to investigate differences between younger adults and older adults in the use of context speech rate in word segmentation, given that older adults perceive timing information differently from younger ones. Method: Younger (18-25 years) and older (55-65 years) adults performed a sentence transcription task for sentences that varied in speech rate context (i.e., distal speech rate) and a syntactic cue to the presence of a word boundary. Results: There were no differences between younger and older adults in their use of the distal speech rate cue to word segmentation. Conclusions: The differences previously documented between younger and older adults in their perception of speech rate cues do not necessarily translate to older adults' use of those cues. Older adults' difficulties with compressed speech may arise from problems broader than just speech rate alone.