Finding the right community and advocacy group in your older age is vital. Whether you're claiming your social security or planning to start a new career in your older age, you need an organization that champions your rights and needs and offers support and advice, too.
But amidst the many options out there, there is a non-profit organization that looms large for many - the AARP, otherwise known as the American Association of Retired Persons. It's a household name that says it represents the interests of people over 50, with over 38 million members.
The organization calls itself "non-profit" and "non-partisan" and offers advice on everything from Medicare to travel. People involved in caregiving can also find lots of advice on long-term care, including guides to care insurance and social security benefits. Plus, those using prescription drugs can get discounts too. The organization has positioned itself as an advocacy group for older Americans, so it's easy to see how it's attracting millions of members.
But is it the best option out there?
Controversies have previously embroiled the AARP, including several class action lawsuits and a senate investigation. Given the organization's murky past, it's only fair that older Americans should have a viable alternative to the AARP. Let's explore exactly why.
AARP promote products and services based on the commission they receive
In 2018, financial disclosures from the AARP suggested that the organization's primary source of income was royalties gained from giving "commercial providers of products, services, and discounts for AARP members" the right to use AARP's intellectual property, i.e., to slap their name or logo on their products.
The AARP earned $908,960,000 from these activities. Membership dues accounted for about $301,017,000, about a third of that. So the AARP makes double from collaborations with businesses that market to AARP members than from its actual members.
When it comes to the AARP, this is a tale as old as time. The organization has been charging royalties for endorsements, i.e., "taking a cut" for decades. And this has been to the detriment of its members.
A Bloomberg investigation found that AARP-endorsed insurance deals cost AARP far more than the market rate for a similar policy. Investigations also found that insurers baked the expensive AARP collaboration costs into their premiums and passed them on to their customers, i.e., paying AARP members.
But that hasn't stopped the AARP from claiming royalties. So there is an incentive to collaborate with the players that can afford these significant fees. And that leads us to our next point.
Innovative new businesses miss out due to prohibitive AARP fees
If you own an awesome start-up aimed at improving seniors' lives, you'll probably want to reach them through a medium like the AARP. We wouldn't blame you if you wanted to advertise in the AARP magazine, which has a national reach of over 22 million readers. But a quick scan of the aarp.org website suggests an ad could cost anywhere between $330,000 to just over $1,000,000 for an advertisement in their magazine. Talk about eye-watering! And we get it; even non-profits have to make money.
But it means only the big players get ad space in those mags. As an AARP member, you won't be exposed to extraordinary, new businesses that could solve your problems faster, cheaper, and with innovative solutions. Instead, you'll likely hear about the same big brands that can afford to do business with the AARP. And pay for the privilege too.
That's hardly useful. What would be far more valuable to you as a reader is an organization that allows emerging businesses to show you what they're about as well. That's having a real choice.
Numerous class action lawsuits point to a lack of transparency and conflicts of interest
Need a health insurance plan? Or life insurance? How about wellness advice? Auto insurance with roadside assistance? Some real estate support? Or an overview of financial services in your area? You can join AARP and get advice on the best products for senior citizens.
You might think this advice would have only your best interests at heart. But, given the mounting number of class action suits involving insurance products and the AARP, you might be wrong. Is your AARP membership not all it's cracked up to be?
Back in 2018, a class action lawsuit alleged that the AARP charged a 4.95% "royalty" on each Medicare insurance plan sold. The plaintiffs alleged this was illegal as it was a commission that the AARP couldn't claim as it isn't licensed as an insurance agent. The case was dismissed because the plaintiffs couldn't prove their premiums would have been lower.
Allegations have been made questioning their non-partisan stance
Back in 2010, the AARP actively supported President Obama's Obamacare policies. And what happened next? Accusations started flying that they were "gaining financially" from these changes, while many seniors actively opposed the new healthcare act.
And if that isn't enough to raise an eyebrow, a meme started circulating back in 2019 claiming that money given to AARP goes "directly" to the Democratic party. While this claim has been proven false, and the AARP came out with a statement denying it pays candidates, it still begs the question: where did the perception come from?
More recently, Boston Herald columnist Jon Decker wrote a scathing op-ed claiming the AARP's non-partisan stance is "merely a mirage," as evidenced by its campaigning for the Inflation Reduction Act (IRA) amidst several mid-term election town halls where Democratic lawmakers were invited to speak. Decker added: "Seniors deserve authentic advocacy, not advocates in name only."
We agree. And that advocacy should be transparent and non-partisan too. The powers at be should not use seniors to further any one political party's agenda. And that's why we're not massive fans of the conservative alternative AMAC - the Association of Mature American Citizens, either. They are to Republicans what AARP is to Democrats.
So AMAC members don't necessarily get non–partisan advice. The same goes for the American Seniors Association (ASA) and the 60 Plus Association, describing themselves as "conservative."
It's time for a real alternative to the AARP
So the AARP has its place, sure. But it has its problems. You deserve a real alternative to the AARP. Like AgeGroup, for instance. We provide objective reviews of products and services to help you make the best choice. We are non-partisan and careful not to include political messaging in our content.
And our advertisement packages are tailored so that start-ups and massive global brands can share their business with you. This means you get a breadth of excellent solutions when you read our content, rather than just the major brands that can afford to work with the AARP. So if you want real choice and objective content, then consider AgeGroup.
Image Credit: Ravi Patel at Unsplash
