Research on interpreting data communicated by smart sensors and distributed sensor networks, and utilizing these data streams in making critical decisions stands to provide significant advancements across a wide range of application domains such as maintenance management. In this paper, a stochastic degradation modeling framework is developed for computing and continuously updating residual life distributions of partially degraded components. The proposed degradation methodology combines population-specific degradation characteristics with component-specific sensory data acquired through condition monitoring in order to compute and continuously update remaining life distributions of partially degraded components. Two sensory updating procedures are developed and validated using real-world vibration-based degradation information acquired from rolling element thrust bearings. The results are compared with two, benchmark policies and illustrate the benefits of the sensory updated degradation models proposed in this paper.