Cards for retirees ?

[ashleyn]

In the past few years, I have garnered a huge amount of points from card sign ups and reaped some pretty good award flights too. Now I am recently retired so my income is from my super fund. Has anyone successful applied for a card in similar circumstances ? If so, how do you frame the application ?

 

[Dr Ralph]

You'll find a number of threads about this same issue from this year.

From memory there weren't too many positive stories.

 

[cove]

Citibank debit works great for retirees with no taxable income proof. No points but fair exchange rates.

 

[showstopper]

First hand data point here - I have assisted a self-funded retiree apply for several credit cards in the last 14 months.

In all cases the superannuation income met the minimum income requirement of the application, and the 'employment status' was noted as retired etc. Occasionally a letter from the applicant's accountant was required to verify the superannuation income.

All credit card applications were successful and all bonus points were received after minimum spend. From the applicants perspective, the approval process did not differ from that of an employed individual.

The cards applied for were:
- ANZ QFF Classic
- ANZ QFF Platinum
- AMEX Velocity Platinum
- Citibank QFF Signature
- NAB Velocity Platinum

 

[Major]

I assume your assisted retiree receives a regular income and it is not a SMSF where you withdraw as you need it.

Despite having no debt and a healthy SMSF I have not been able to secure a CC since retiring. It's a real PITA

 

[cove]

To satisfy the cash flow requirement of between $50,000 and $80,000 for the better credit cards you would need to have a reasonable amount of superannuation pension that is tax free,shares with dividends or property rentals.
I help widows with various financial circumstances and I suggest they get set with a good credit card prior to their retirement from the workforce. Many older women have only ever had a card as an attachment to their partners main card so when he is gone they have no official credit file at all. No one asks if you are still eligible based on income once you have that credit card.
A tax return assessment is always a place most credit card companies want as a start but more recently they are asking about business results as well. Both Qudos and Bankwest have recently asked for lots of information.

 

[tgh]

I have been retired for a little while now…
Have had no problem at all with cc applications.
Just note the annual income and how and where it comes from.
We draw a pension each from the smsf , and also have some personal investment income.

 

[cove]

If you only have a Social Security pension you would just go debit card.
Many don't qualify for Social Security based on the assets/income test and can happily apply for credit cards by what tgh has posted.

 

[showstopper]

I assume your assisted retiree receives a regular income and it is not a SMSF where you withdraw as you need it.

Correct, regular income from the SMSF is received.

 

[blu]

In the past few years, I have garnered a huge amount of points from card sign ups and reaped some pretty good award flights too. Now I am recently retired so my income is from my super fund. Has anyone successful applied for a card in similar circumstances ? If so, how do you frame the application ?

I'm retired and churn a number of cards annually. I usually apply online and send supporting documents as specified. The application form allows you to select "Retired". If you need to contact the Call Centre, CSO's sometimes take a while to get their head around it (particularly if offshore like Citi).
Some banks require a statement from the Super Fund Trustee Co, or your Accountant (for SMSF), confirming your income. I keep credit limits to the minimum allowable. MrsB does similar without problems.