Aarp

What Is AARP?

AARP is a non-profit organization in the United States dedicated to empowering individuals aged 50 and older to choose how they live as they age. Initially known as the American Association of Retired Persons, AARP provides a wide range of services and resources, engaging in advocacy, information dissemination, and offering benefits to its millions of members. It falls under the broader category of public finance and social policy, specifically focusing on the economic security and well-being of older adults. The organization plays a significant role in shaping policy discussions around retirement planning, healthcare, and other issues affecting its demographic.

History and Origin

AARP was founded in 1958 by Ethel Percy Andrus, a retired California educator and principal. Andrus had previously established the National Retired Teachers Association (NRTA) in 1947 with the aim of securing health insurance benefits for retired teachers, who often struggled to find adequate coverage at the time. The success of the NRTA in obtaining group health insurance through Continental Casualty Company in 1956 led to widespread interest from non-educators facing similar challenges.⁹ Recognizing this broader need, Andrus, along with Leonard Davis, co-founded the American Association of Retired Persons to extend these benefits and advocacy efforts to a wider population aged 55 and older. In 1999, the organization officially shortened its name to AARP to reflect that its membership includes many individuals who are not yet retired or continue to work.⁸

Key Takeaways

• AARP is a prominent non-profit organization advocating for the interests of Americans aged 50 and older.
• It was founded in 1958 by Ethel Percy Andrus to provide affordable health insurance and support for older adults.
• AARP offers a variety of member benefits, including discounts, financial resources, and health information.
• The organization is a powerful lobbying force, actively influencing legislation related to Medicare, Social Security, and other senior issues.
• AARP plays a crucial role in public discourse surrounding aging, demographics, and the financial stability of retirees.

Interpreting AARP's Role

AARP's role extends beyond simply providing benefits; it functions as a significant voice for its demographic in the national policy arena. By representing a large segment of the population aged 50 and over—a group with increasing demographics and economic influence—AARP shapes conversations around public benefits and services. Its positions on issues such as healthcare reform, pension plans, and economic security are closely watched by lawmakers and industry stakeholders. The organization also provides practical resources, helping members navigate complex topics like budgeting for retirement and understanding healthcare expenses.

Hypothetical Example

Consider an individual, Sarah, who is 55 years old and concerned about her financial future and healthcare options as she approaches traditional retirement age. She might become an AARP member to access their resources. AARP's website could offer Sarah tools to estimate her Social Security benefits, articles explaining the intricacies of Medicare enrollment, and discounts on prescription drugs. Furthermore, if legislative proposals were introduced that could impact her future healthcare costs, AARP would likely engage in lobbying efforts, and Sarah, as a member, would receive information about these developments and opportunities to make her voice heard, illustrating the organization's practical impact on individual financial and health security.

Practical Applications

AARP's influence is evident across various aspects of finance, markets, and public policy. The organization actively engages in lobbying Congress and state legislatures to protect and strengthen programs vital to older Americans. Their advocacy efforts have contributed to the creation of Medicare and Medicaid and have been instrumental in resisting changes to Social Security. AAR⁷P also provides extensive resources on financial services, fraud prevention, and employment, including initiatives against age discrimination. Add⁶itionally, AARP conducts and publishes research on trends affecting older adults, such as preferences for aging in place, which informs both policy development and consumer choices.

##⁵ Limitations and Criticisms

Despite its broad reach and influence, AARP has faced criticism, particularly regarding its dual role as an advocacy group and a provider of endorsed financial services and insurance products. Critics contend that the royalty fees AARP receives from licensing its name and logo to private insurance companies, particularly for Medicare Advantage plans, could create a conflict of interest. This arrangement means AARP can earn substantial revenue from products whose costs could directly impact its members or taxpayers, leading to questions about whether the organization's policy positions truly align with the best interests of older Americans or are influenced by financial incentives. Fur⁴thermore, AARP has drawn scrutiny for past affiliations, such as its membership in the American Legislative Exchange Council (ALEC), an organization whose policies were sometimes seen as contrary to the interests of seniors. AARP later withdrew from ALEC after member and advocacy group protests.

##³ AARP vs. National Council on Aging

While both AARP and the National Council on Aging (NCOA) are prominent organizations dedicated to improving the lives of older Americans, they differ in their primary focus and operational models. AARP operates as a large membership-based organization, offering a wide array of direct benefits, services, and discounts to its members, alongside its extensive advocacy efforts. Its mission emphasizes empowering individuals to choose how they age and maintaining economic security. In contrast, the NCOA primarily serves as a national voice for older adults, focusing on programs and policies that improve health, financial security, and independence for all seniors, often working through a network of community-based organizations. While both engage in consumer protection and policy advocacy, AARP's direct membership model and extensive product endorsements set it apart from NCOA's broader, more programmatic approach.

FAQs

What is the primary purpose of AARP?

AARP's primary purpose is to advocate for the needs and interests of individuals aged 50 and older, providing them with information, resources, and services to enhance their quality of life as they age.

How does AARP influence policy?

AARP influences policy through extensive lobbying efforts at federal and state levels, conducting research, and mobilizing its large membership base to support or oppose legislation related to issues like healthcare, Social Security, and retirement.

##²# Is AARP only for retired people?
No, AARP's membership is open to anyone aged 50 or older, regardless of their employment status. The organization officially changed its name from "American Association of Retired Persons" to AARP in 1999 to reflect this broader demographic.

##¹# Does AARP offer financial advice?
AARP provides a wealth of financial services resources, tools, and information related to retirement planning, budgeting, and managing finances in later life. However, it does not provide personalized financial advice.