A common recommendation in personal finance is that retired people pay off their consumer balances before entering retirement, but that doesn’t mean retirees have to shun credit cards completely. In fact, credit cards can be more useful for retirees than any other group. Here’s why:
1) They’re convenient – Retirees often search for a simpler life with less hassles. Credit cards allow spenders to put all their monthly charges into one itemized monthly bill when they pay by credit card. Additionally, automatic bill pay can consolidate all your monthly bills for simplicity and postage savings.
2) Rewards are more rewarding – Seniors derive more benefit from popular rewards like airline miles or points redeemable for travel because they have the time to use them. Rewards credit cards are especially lucrative for people who have the time to fly on less popular days during the middle of the week, or to secure red eye flights overnight to their favorite destinations.
3) Combined discounts – Retired Americans enjoy discounts on everything from traveling to online shopping. When combined with a cash back rewards card with an online savings portfal, the combined savings really add up. Discover cards, for instance, have an online shopping tool which let customers shop online for cash rebates based on a percentage of their online spending.
Retired individuals should enjoy all the liberties of modern consumer finance. If you’re of retirement age, consider opening a new credit card that caters to your retired lifestyle. Chances are that what you want in retirement is very different from what you want in your working life.