The best retirement credit cards
Retirement is an important stage in life, and it is essential to be prepared for the exciting times of your golden years. One way to do this is to make sure you’re financially ready, and a great way to start preparing yourself is to get yourself a healthy credit card.
Although most credit cards target a younger age group, luckily many credit cards offer special incentives for retirees. Since choosing a credit card can be intimidating, in this article, I’m going to take a look at the best retirement credit cards and why they might be the best fit for your needs!
Why should you get a credit card for retirement?
If you don’t have a credit card and are about to retire, you should consider getting one as soon as possible. Credit cards provide a convenient and easy way to purchase products and services without carrying cash.
Not carrying cash is especially convenient for the elderly, as they can sometimes be prone to losing money.
Additionally, carrying cash makes the elderly the perfect target for thieves, thieves and bag thieves.
But there is also a bigger reason to have a credit card when you reach old age. Today, most credit cards reward you in different ways for your spending. For example, cards today allow you to earn points, miles, perks, and cash back rewards that you can use to pay for purchases or redeem in a variety of ways, including travel.
Having a credit card helps you save and do more with your money. When you run out of regular pay to look forward to, making the most of the money you have is a top priority.
If I have a credit card, why do I need a new one for retirement?
There is a simple reason why you should consider getting a new card for your retirement. Some of the benefits of the best credit cards have an age limit, which means you won’t be able to enjoy them after 60 or 65.
A typical example of this is travel medical insurance which is built into many major credit cards. Unfortunately, there’s a good chance that your current card’s insurance, if it offers any, won’t cover seniors. Therefore, if you want to continue to enjoy credit card travel insurance during retirement, you will need to change your card.
Another reason you’ll probably want to change your credit cards is that we tend to change our spending habits and preferred payment methods after retirement. Unfortunately, this means that you probably won’t enjoy your favorite rewards card as much as you used to as you get older, which is why you should consider new options that are better suited to your new lifestyle.
It should also be noted that specific categories of cards are better suited to certain lifestyles.
For example, many business credit cards offer higher earning rates than personal cards, and refund cards tend to have lower reward rates than travel cards.
You want a higher cash back rate – and that’s why choosing your card strategically is essential: if you select a card from a category that doesn’t match your retiree lifestyle, you’ll be swimming upstream .
What are the best retirement credit cards?
Now that you know why you need a strong card for retirement, here are my top recommendations for senior-friendly credit cards.
The best card for car travel during retirement: AARP® Essential Rewards Mastercard® from Barclays
The AARP Essential Rewards Mastercard is a card designed for seniors. It is a cashback card that offers:
- 3% discount at petrol stations
- 3% discount on pharmacy purchases (excluding Target or Walmart).
- 2% on medical bills.
- 1% on everything else.
The second and third items are major sources of spending during retirement, and recovering 3% of gasoline means it’s a great choice for that road trip across the country or that scenic drive you take. have been on your bucket list for ages.
The best part is that there is no annual fee, so you have free access to a very decent, senior-friendly rewards program.
Besides cashback, you can use your rewards to pay for your AARP membership which among other things grants you senior discounts on all return economy and business class flights with British Airways.
Other airlines are starting to follow this model, which makes paying for AARP membership a bargain, even if you only fly once every three years.
The best retirement travel card: the Capital One Venture Rewards credit card
The Capital One Venture Rewards credit card is as easy as travel cards, which is all the better for your average retiree. This is a flat rate reward card that gives you 2 miles for every $ 1 spent on any purchase, and it has no spending cap. With every mile valued at around 1.3 cents, that comes down to 2.6% cashback on every purchase you make.
There is no complicated category system, no need to stick to a particular brand, hotel chain or airline. Plus, you won’t have to worry about whether or not it makes sense to pay for something with your card, as it always will.
It has an annual fee of $ 95, but it’s easily offset with an annual credit of $ 100 to speed up your airport security check with Global Entry or TSA PreCheck. Plus, it offers a very generous welcome bonus of 60,000 miles worth almost $ 800.
Add in travel perks like travel accident insurance, no offshore transaction fees, and rental car collision insurance, and you laugh.
The best premium travel card for retirement: Chase Sapphire Reserve®
While Capital One Venture Rewards is my pick for the best comprehensive retirement travel card, it won’t be discounted if you’re looking for exclusivity and pampering during your trip.
If you are the type of person who enjoys relaxing in a lounge before your flight, getting a massage, taking a nap and refreshments, as well as being treated like a VIP, then you should consider the Chase Sapphire Reserve.
The most important benefits and features of this card include:
- Annual travel credit of $ 300.
- $ 100 Global Entry or TSA Pre✓® Fee Credit.
- Free priority pass Select membership to access the airport lounge.
- Unique advantages in all the hotels of the Luxury Hotel & Resort Collection.
- 24/7 access to customer service specialists.
- Comprehensive travel insurance.
The biggest downside is the hefty annual fee of $ 550. Still, the Priority Pass membership, the $ 300 annual travel credit, and the $ 100 Global Entry or TSA Precheck credit help offset the expense almost entirely.
Ideal for debt consolidation during retirement: US Bank Visa® Platinum Card
Keeping your finances healthy is more important than ever during retirement. You will want to reduce your debt as much as possible. Since many Americans retire with a balance on their credit cards, it’s a good idea to start paying off that debt as soon as possible so you don’t spend your money on high interest.
A great way to do this is to consolidate all of your credit card debt by transferring all balances to a new credit card with an introductory 0% APR on balance transfers.
Many cards offer this feature, but the best overall is the US Bank Visa® Platinum card, which offers the longest grace period of all (20 months) and comes with no annual fee.
Seniors who have a hefty medical bill that they paid with a loan or credit card will benefit from applying for that card, provided they can pay it off in 20 months or less before the APR starts.
The only downside to this card is that it doesn’t have a rewards program, so you’d better combine it with another card to manage your spending.
The bottom line
Even when you retire, you need to make sure you keep your finances on track.
Credit cards can be a smart way to keep your finances on track – by helping you save on your most common purchases. Plus, you’ll have a helping hand with traveling the way you deserve or allowing you to consolidate bad debt in one place and avoid paying interest for an extended period.
It’s important to prepare financially before you retire, so consider applying for one of these types of credit cards today.
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