Which statements are true about AARP?

With nearly 38 million members, AARP is a powerful advocacy group focused on issues affecting those 50 and older. To understand which statements are true about AARP, one must look past common misconceptions and examine its operational structure, advocacy efforts, and the range of services it provides to a diverse membership that extends beyond the retired population.

Quick Summary

AARP is a non-profit, non-partisan organization that advocates for individuals aged 50 and older on issues like healthcare and financial security. Membership is open to anyone 18 and older, offering a wide array of discounts and benefits, though some insurance products have age restrictions. Its operations are funded by membership dues and substantial royalties from products that carry its name.

Key Points

• AARP is a nonprofit organization: AARP is officially designated as a 501(c)(4) nonprofit, focusing on social welfare and advocacy for individuals aged 50 and older.

• Membership is open to all adults: While AARP’s mission targets the 50+ demographic, anyone aged 18 or older can join and access most benefits, though some insurance products are age-restricted.

• AARP is non-partisan: The organization maintains a strictly non-partisan stance, meaning it does not endorse candidates, political parties, or contribute to campaigns.

• Lobbying is a core function: As a major lobbying force, AARP actively influences legislation on issues like Medicare, Social Security, and prescription drug costs at both the federal and state levels.

• It earns revenue from royalties: A significant portion of AARP's income comes from royalties paid by companies, such as UnitedHealthcare, that license the AARP brand for their products.

• Provides extensive benefits and discounts: AARP members receive access to hundreds of discounts on travel, restaurants, and insurance products, as well as subscriptions to publications like AARP The Magazine.

• It has for-profit affiliates: AARP operates for-profit subsidiaries, such as AARP Services, Inc., which manages relationships with providers who offer products under the AARP brand.

AARP's Foundation and Mission

Founded in 1958 by retired teacher Ethel Percy Andrus, AARP was established to help retired teachers secure affordable health insurance. The organization's mission has since expanded, with the modern-day AARP dedicated to empowering people to choose how they live as they age.

Unlike a government agency, AARP is a nonprofit entity funded primarily through membership dues, publication advertising, and royalties from partner companies. It is officially non-partisan and does not endorse or contribute money to political candidates or campaigns. However, it is an extremely influential lobbying group on issues important to its demographic, such as Medicare, Social Security, and prescription drug costs.

Membership Eligibility and Benefits

One of the most persistent myths about AARP concerns its membership requirements. Contrary to its former name, the American Association of Retired Persons, members do not need to be retired to join. In fact, anyone aged 18 or older can become a member to access the majority of its discounts, programs, and resources. Some age-restricted benefits, such as certain insurance products, are the exception.

An AARP membership provides access to hundreds of discounts on travel, restaurants, entertainment, shopping, and more. These benefits also extend to financial services, such as credit cards and tax preparation assistance. Members also receive subscriptions to AARP's publications, including the widely-circulated AARP The Magazine and AARP Bulletin. Younger members often join specifically for the discount opportunities, especially during periods of high inflation.

The Relationship with For-Profit Affiliates

A key aspect of AARP's operation that is often scrutinized is its financial relationship with for-profit entities. AARP has wholly owned, for-profit subsidiaries, such as AARP Services, Inc., and AARP Financial Services Corporation.

• AARP Services, Inc.: This for-profit subsidiary is responsible for overseeing the products and services that carry the AARP name. It manages the relationships with the independent providers who offer these products to members.
• Royalty Revenue: The most significant portion of AARP's revenue comes from royalty payments received from commercial providers, particularly insurance companies like UnitedHealthcare. For example, a 4.95% fee is paid to AARP for every UnitedHealthcare-branded Medigap policy sold.

This financial model has drawn criticism over potential conflicts of interest, as AARP lobbies on healthcare issues while receiving large sums from insurance partners. AARP counters that it separates its advocacy operations and uses the royalty revenue to support its mission and advocacy work.

How AARP Serves the 50-Plus Community

AARP provides numerous educational resources and programs that benefit people as they age. These include fraud prevention, advocacy for family caregivers, and initiatives to combat age discrimination. AARP also hosts the AARP Foundation, a charitable affiliate that helps vulnerable, low-income older adults through programs addressing food insecurity and financial hardship.

Comparison of AARP's Non-Profit and For-Profit Entities

Feature	AARP (Non-Profit)	AARP Services, Inc. (For-Profit)
Primary Function	Advocacy, education, and social change for those 50+	Manages brand licensing and oversees partner product quality
Funding Source	Membership dues, advertising, and royalties	Royalty payments from corporate partners
Mission	To empower people to choose how they live as they age	To generate revenue to support the parent organization's mission
Political Stance	Non-partisan; lobbies on issues, does not endorse candidates	Does not engage in political advocacy directly
Key Activities	Publications, resources, volunteer programs, lobbying efforts	Research and quality control for endorsed products and services

Conclusion

In summary, several key statements accurately describe AARP. It is a nonprofit, non-partisan organization dedicated to advocating for Americans 50 and older, though membership is open to adults of all ages. The organization leverages its large membership to influence policy on crucial issues like health care and retirement security. AARP's funding structure, which relies on a mix of membership dues and substantial royalties from branded products like insurance, is a true aspect of its operations, even if it has been a point of controversy for some. For most members, however, the value lies in the wide array of discounts, publications, and resources that help enhance their quality of life.

Resources

• AARP.org: The official website for AARP, offering extensive information on member benefits, advocacy work, and resources for aging.
• Investopedia: AARP Overview: An independent overview detailing AARP's structure, revenue sources, and mission.

Frequently Asked Questions

Is AARP a for-profit company?

No, AARP is a nonprofit, tax-exempt organization. However, it does have for-profit subsidiaries that generate revenue through licensing agreements with commercial companies, which helps fund its advocacy efforts.

Does AARP only offer benefits to retired people?

No, AARP offers benefits to anyone over the age of 18 who joins, not just retired people. Many of its discounts on travel, dining, and other services are available to all members, regardless of their age or employment status.

Does AARP endorse political candidates?

No, AARP does not endorse or give money to political candidates or parties. The organization maintains a non-partisan position and focuses its political activity on advocating for issues important to its members.

How old do you need to be to join AARP?

While AARP focuses on the 50-plus community, anyone aged 18 or older can become a member. The organization’s mission is to empower people as they age, so benefits are designed for members of all ages.

What is the AARP Foundation?

The AARP Foundation is a separate, affiliated charity that provides security, protection, and empowerment to vulnerable, low-income older adults. It works to help combat issues like senior poverty, housing insecurity, and food insecurity.

How does AARP advocate for its members?

AARP advocates for its members at the local, state, and national levels on issues such as protecting Social Security, improving Medicare, lowering prescription drug costs, and fighting age discrimination. Its large membership gives it significant lobbying power.

What types of discounts does AARP offer?

AARP members can get a wide array of discounts, including deals on travel, restaurants, car rentals, insurance, and other services. The savings can be substantial and, for many, outweigh the cost of the annual membership.