What Is AARP?

AARP, previously known as the American Association of Retired Persons, is America's leading organization for people aged 50 and older. It is an association that provides benefits, marketing services, and lobbying on behalf of members.

Founded in 1958 by retired educator Dr. Ethel Percy Andrus, AARP is a nonprofit, nonpartisan association with a membership of nearly 38 million.

How AARP Works

AARP provides information, education, research, advocacy, and community services through a nationwide network of local chapters and experienced volunteers. It focuses its work on consumer issues, economic security, work, health, and independent living issues. AARP engages in legislative, judicial, and consumer advocacy in these areas, but it does not make campaign contributions to endorse political candidates.

AARP is considered a powerful lobbying group as well as a successful business, selling life and health insurance, investment products, and other financial and non-financial services. It is also an independent publisher, offering Modern Maturity magazine and the monthly AARP Bulletin. AARP produced $1.89 billion in revenue in 2022, which came from a variety of endeavors, including advertising revenue from its publications and royalties for licensing its name and logo. However, membership fees represent the most significant source of revenue.

It is registered as a 501(c)(4) non-profit by the Internal Revenue Service (IRS), which means it is permitted to engage in lobbying. It also administers some 501(c)(3) public charity operations while some of its other operations are for-profit.

AARP Affiliates

There are several AARP-affiliated organizations, and they include the following:

• The AARP Foundation is a non-profit charity that assists people over age 50 who may be at economic and social risk. Within the foundation operates AARP Experience Corps., which encourages tutoring and mentoring of children, and AARP Institute, which holds its gift annuity funds.
• AARP Services develops and manages new products and services and is for-profit.
• Legal Counsel for the Elderly is a non-profit that provides legal services for seniors in Washington, D.C.
• AARP Financial Services holds AARP real estate and is for-profit.
• The AARP Insurance Plan administers some AARP group insurance plans.

AARP also has many other initiatives, including:

• Promoting driver safety (AARP Driver Safety)
• Producing television programming that targets seniors
• Tax advising and assistance
• Fraud prevention and consumer protection
• Sponsorships that support social causes, such as food insecurity
• Nonpartisan voter engagement

AARP manages outreach programs that address housing issues and social isolation among seniors. AARP has also initiated and managed programs that advocate for the strengthening of Social Security and Medicare.

Criticism of AARP

AARP is one of the strongest lobbying groups in America. Its efforts often receive attention for exerting its influence in Washington, D.C., and in state capitals. Its non-profit operations also receive millions of dollars per year in the form of federal grants.

Though the organization is officially nonpartisan, some argue that its positions fall into the more liberal part of the political spectrum. These include things like AARP's support for government assistance programs for retirees, opposition to privatizing Social Security, and commitment to diversity, equity, and inclusion in its workforce.

The Bottom Line

AARP is a nonprofit organization that promotes the well-being and interests of those over age 50. it was formerly called the American Association of Retired Persons but changed its name to AARP in 1999 to reflect the fact that many members were still working full or part-time. AARP is nonpartisan, meaning it doesn't support political campaigns or endorse political candidates. It does, however, have a robust lobbying presence at both the state and federal level on issues that impact older Americans and retirees, such as Social Security and health insurance access. It also offers many benefits to members, such as tax assistance, retail and travel discounts, insurance products, fraud prevention, and education.