Retirement Planning for Telecom Employees: Is AARP the Missing Piece in Your Strategy?

I want to delve into a topic that may make you cringe or raise some eyebrows.

However, it's a topic worth discussing, especially for telecommunications employees who are curious about retirement planning and investment.?

It's about the American Association of Retired Persons (AARP), an organization that has been around since the late 1950s. For some, especially those in their early 50s, the thought of joining AARP might seem uncomfortable, even cringeworthy.?

In this comprehensive guide, we will explore the ins and outs of AARP, its benefits, potential drawbacks, and why it might be worth considering for your retirement journey.

A Blast from the Past

Let's take a walk down memory lane. If you were born in the late 60s or early 70s, you might remember the advertising blitz for AARP membership. It was similar to the ad campaign for the Medicare supplement plan, famously endorsed by actor Lorne Greene.

With a gigantic calculator, Greene would detail the costs of hospital stays and other medical expenses without health insurance. Similarly, AARP had an extensive advertising campaign, promoting its benefits and services on nearly every television channel. For many of us, these ads were a constant presence during our childhood or teenage years.

From its inception, AARP positioned itself as a political powerhouse to protect seniors. The organization was born in California in the late 50s, founded by a group of teachers aiming to enhance their health insurance benefits. Their advocacy work is something we see frequently in today's corporate world, such as the ongoing battles for better health insurance at companies like Verizon.

The Golden Age of AARP

In my middle school years, during the late 70s and early 80s, AARP was a household name. It was during this period that we saw a massive overhaul of the Medicare program. Medicare, the health insurance program for individuals over 65, was initially rolled into Social Security costs. However, the early 80s saw Medicare costs being split out.

AARP played a significant role during this period, lobbying Congress and advocating for reforms to enhance Medicare. They achieved a fair amount of success, securing several benefits for seniors. However, the realization that these benefits came at a cost – through increased Medicare premiums – led to a subsequent law being passed to reduce these premiums and soften the blow for seniors. This was a classic case of a Pyrrhic victory, as seniors still had to pay collectively for the benefits they had fought to secure.

Perception and Membership: The Generational Divide

Fast forward to the 90s, when my parents were reaching the qualifying age for AARP, they wanted nothing to do with the organization. The AARP marketing campaigns typically portrayed members as gray-haired individuals who were somewhat stooped over and moved slowly.?

This was far from how my parents, and their generation, perceived themselves in their 50s and 60s. The AARP of the 90s was seen as a symbol of old age, something many people were not ready to associate themselves with.

However, today, the automatic membership enrollment at age 50 seems to have become less aggressive. I recently turned 53 and have seen little push from the AARP. Perhaps the organization, which is now around 65 years old, has lost sight of its initial goal. Or, maybe there's just not a fight to be fought, as we often see in local government.

To Join or Not to Join: The Advantages and Disadvantages

So, the question arises, should you join the AARP? What benefits can it offer you, and will it negatively affect your self-esteem to flash your AARP membership card?

Without a doubt, joining AARP can be beneficial. Despite some shifts in focus over the years, AARP continues to be a powerful advocate for seniors. By becoming a member, you lend your voice to this collective, bolstering its ability to influence policies that directly impact you. While you might not agree with all their positions, it's undeniable that they wield considerable power in Washington.

AARP also offers discounts, a feature that, while not as prominent in modern AARP communications, remains a valuable benefit. Whether it's travel, dining, or entertainment, you can save money with an AARP membership.

Restaurants, Stores, and Services: AARP membership opens up a variety of discounts at numerous restaurants and stores. In addition, AARP offers its members access to exclusive services, such as their own travel agency. While the quality of these travel deals can be subjective and dependent on personal preferences, it's an offering worth considering if you plan to travel in your retirement.

Insurance and Financial Services: Furthermore, AARP provides an opportunity to access insurance services. From auto and homeowners insurance to potential life insurance offerings, AARP covers a broad spectrum. It's crucial, however, to carefully peruse their website and ask yourself: "Will I use these services, and will I use the discount?" Remember, the availability of a discount is not sufficient; its utility depends on its application.

The Catch: Discounts and Endorsements

While AARP offers an enticing variety of discounts and services, there are a few caveats to consider. Every endorsement or offer from AARP involves financial compensation. For example, if 'Fred's Fudge Farm' provides a 10% AARP discount, there's a financial transaction involved.

The Reality of Endorsements

AARP's endorsement doesn't necessarily mean it's the best—it could merely be the one that paid AARP the most. It's essential to remember that endorsements are usually paid, and they may not always reflect the best option for you.

A Shift in Political Leanings

Another aspect to consider is AARP's political leanings. Generally, AARP leans slightly to the left politically. If your political inclinations lean more to the right, there are alternative organizations available. While these may offer similar discounts, they may lack the political clout AARP has.

The Future of AARP and Its Influence on Social Security Reform

As we gaze into the future, the relevance of AARP could become even more pronounced. The coming years may see a massive overhaul of social security. Without intervention, social security could potentially go bankrupt, leading to serious questions about how this issue will be addressed.

Will a two-tier social security tax be introduced? Will the social security tax earnings limitation on the higher end be increased? Will benefits be denied to some people because they make too much in retirement? These are crucial questions that could affect your retirement life, and having a strong organization like AARP advocating for your interests could be advantageous.

Final Thoughts: Is AARP the Right Choice for You?

Deciding to join AARP is a personal decision, but it's not one to be taken lightly. AARP can offer you significant benefits, including political clout, potential discounts, and a suite of services. However, it's also crucial to be aware of the potential drawbacks and to maintain a healthy skepticism towards the endorsements provided.

Bottom line: Whether or not you should join AARP really depends on your individual situation and needs. There are definitely benefits to joining, but there are also costs and other factors to consider. It’s worth taking some time to weigh the pros and cons before you make a decision.?

And remember, just because you’re eligible to join AARP doesn’t mean you have to. It’s entirely up to you whether you want to join or not!

Looking for More?

I’ve spent the past 30 years helping telecom employees maximize their company-specific benefits packages for situations including early retirement, buyout offers, career changes and more.

If that sounds like something you’re interested in, then?let’s connect here on LinkedIn.

You can also?listen to my “Your Telecom Retirement” podcast?or?grab my free eBook on “Retirement Built Right!”

Looking forward to connecting with you soon!