AARP is copying AMAC’s early retirement plan, but there are big differences.
“Imitation is the sincerest form of flattery,” Charles Colton said over a hundred years ago. This famous phrase has been repeated ever since. And so it goes with that “other” liberal advocacy group that masquerades as a senior benefits organization. AARP is copying AMAC’s early retirement plan, but there are big differences. The AMAC plan is voluntary and intentionally kept in the private sector. It also allows a modicum of choice on where employees and employers invest. AMAC’s goal is to allow younger workers to amass wealth, allowing them to take Social Security early at 62 with more money in their accounts to counter a slightly lower benefit due to a proposed increase in the full retirement age.
Contrast that with AARP’s mandatory 1% contribution rate. That’s essentially a tax increase on workers. As our Delegate Coordinator and “Man on The Hill” guy, Parker Erikson, said of their plan, “Nothing like solving the problem of a government-run, mandatory, tax-subsidized retirement program headed toward insolvency with another government-run, mandatory, tax-subsidized retirement program.” Note, AARP prefers to be silent when it comes to trying to solve Social Security’s longevity problem. Their modus operandi has traditionally been to wait for someone else to propose an idea and attack it for “throwing old folks off a cliff”.