Retirement is not a one-size fits all. It is different for different people. It could mean traveling overseas to someone while to others it may mean dining out extensively. To some it may mean farming and growing your own produce, to others it may mean urban living. With such vastly different lifestyles in retirement there is no single credit card that we could recommend for retirees. Here are some of the ones that we think work best in retirement.
AARP Credit Card
| Highlights | No Annual Fee. $100 Bonus on spending $500 in 3 months 3% cash back on gas and restaurant purchases 1% on others |
| Rates and Fees | $0 Annual Fee 17.74 – 24.49% APR based on credit score. 26.49% Balance transfer rate. |
| Other benefits | For every purchase you make at restaurants with your AARP® Credit Card from Chase, $0.10 will be donated to AARP® Foundation in support of Drive To End Hunger. Points can be used to pay for AARP membership fees. |
| Bottom-Line | No annual fee and 3% cash back on gas and restaurant purchases make this an attractive card for retirees. But there are other high cash back cards on more categories if your spending levels are higher and don’t mind paying the annual fee. |
Blue Cash American Express Card
| Highlights | $250 Bonus on spending $1000 in 3 months. 6% cash back at US supermarkets on up to $6,000 a year in spending, then 1%. 6% cash back on select U.S. streaming services. |
| Rates and Fees | $95 Annual Fee 0% APR for 12 months on purchases and balance transfers, and then the ongoing APR of 13.99% – 24.99%. |
| Other benefits | 3% cash back at U.S. gas stations and transit, including taxis, ride-shares, trains, buses, parking and tolls. 1% cash back on everything else. |
| Bottom-Line | While it charges a $95 annual fee it is one of the best cash-back cards out there with generous cash backs on groceries, transportation and streaming services. |
Costco Anywhere Visa Card By Citi
| Highlights | 4% cash back on gas purchases (both at Costco and other gas stations) on up to $7,000 in spending a year, then 1% back. 3% cash back on restaurants and most travel purchases. |
| Rates and Fees | $0 Annual Fee No Intro APR. Ongoing APR of 16.24%. |
| Other benefits | 2% cash back at Costco and Costco.com. If you combine it with a Costco Executive membership then 4% cash back total. 1% back on all other purchases |
| Bottom-Line | Full-time retirement means you’ll no longer get a full-time paycheck. If you’re being more mindful of your spending and you live near a Costco, consider the Costco Anywhere Visa® Card by Citi. Retirees who spend a lot on prescriptions will also find that Costco’s pharmacy prices are among the lowest around, and you’ll earn 2% back on Costco pharmacy spending with the Card. |
Discover It Cash Back
| Highlights | 5% cash back on everyday purchases in different spending categories each quarter like grocery stores, restaurants, gas stations and online shopping, up to a quarterly maximum of $1500 when you activate. Unlimited 1% cash back on all other purchases. |
| Rates and Fees | $0 Annual Fee 0% intro APR for 14 months from date of account opening. After the intro APR expires, APR will be 13.49% to 24.49%, based on creditworthiness. |
| Other benefits | Discover has probably the best customer service for card holders and all their customer service reps are US based. |
| Bottom-Line | Activating the bonus categories each quarter can be a hassle. If you forget, you don’t get 5%. The categories might not be a good fit for everyone. You also have to wait a year for your bonus. |
When shopping for the ideal card for your retirement, be sure to think about what you value most. For example, you may want to save on everyday supermarket purchases with the Blue Cash American Express Card or save on gas and other purchases at Costco with the Costco Anywhere Visa Card. If you have multiple things you want to focus on, like travel and everyday purchases, you can always get separate cards for each of those.