If you’re over 60, you have a lifetime of budgeting and financial experience under your belt. Now’s the time to bask in the glow of all your hard work, not incur more debt.
So here’s a cheat sheet of goals and strategies you can use at this stage of your financial journey.
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Financial Goals
Reduce Risk, Simplify Finances
You’ve worked hard on your credit score, but now you’re most likely on a fixed or semifixed income. And that can spell trouble if you’re not careful. Rising healthcare costs can also increase the threat of debt later in life.
According to Experian, this this is the average amount of credit card debt each generation carries:
— Generation Z (18 to 28): $3,553
— Millennials (29 to 44): $7,068
— Generation X (45 to 60): $9,684
— Baby Boomers (61 to 79): $6,766
So at this stage of your life, the goal should be to not incur extra debt and reduce risk where you’re able. Now isn’t the time to lose control of your spending.
“I focus on keeping my balances at zero,” says Tom Core, a 60-year-old retiree based out of Akron, Ohio. “My advice would be to keep credit card debt as low as possible. And prioritize high-interest debt to pay off first.”
Use Catch-Up Contributions for Retirement
If you haven’t retired yet, top off contributions to your 401(k) and individual retirement accounts every year — especially if your employer matches your contributions. Also, sit down with a financial advisor and look for any gaps that need filling before retirement.
Experts recommend you have at least eight times your yearly salary in savings by the time you turn 60. Calculate how much you’re making annually, then compare that with how much you have in your savings to see how close you are to your goal.
When calculating your budget for retirement, add up all your annual expenses — including food costs (groceries and dining out), transportation and travel, insurance premiums and healthcare costs. Then go through your bank statements to get an idea of how much you spend every month and year, and compare what you spend with your expected retirement income.
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Credit Card Strategies for Over-60-Year-Olds
Supplement Income with Rewards
At this stage, it may not be necessary or even beneficial to open new lines of credit. A fixed income coupled with high-interest debt is a recipe for disaster. But you should examine the credit cards you have in your wallet to make sure you’re earning the most you can out of them.
For example, a PYMNTS Intelligence special report from 2024 found that 46% of baby boomers and seniors paid for a restaurant meal using credit in the last 90 days compared with 50% to 56% among other age groups. This trend is similar across other categories like groceries, home furnishings and appliances, implying baby boomers and seniors rely more heavily on debit or cash rather than credit to make their purchases.
Which means you’re leaving money on the table. If you don’t want to deal with rotating or quarterly categories, consider a flat-rate cash back credit card. Cards like the Citi Double Cash® Card or the Wells Fargo Reflect® Card earn 2% cash back on every purchase, no matter what it is.
If you spend $2,000 each year on a 2% cash back credit card, you get an extra $40 back. That cash back amount goes up the higher your percentage. So cards like the Chase Freedom Unlimited® — which earns 3% cash back on drugstore and dining purchases and 1.5% cash back on everything else — allow you to earn more money back.
“I focus on maximizing cash back options and keeping a zero balance, if possible,” says Core, who prefers cash back to travel rewards. “I use my credit cards for everything but mortgage and utilities. Groceries, dining, online shopping, etc.”
Remember, these are purchases you’re going to make anyway. So pay it off right away and pocket the extra cash you earn from that purchase.
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Take Advantage of 0% APR Balance Transfer Windows
If you’re dealing with debt due to an unforeseen medical issue or a broken appliance, consider a balance transfer card that has a 0% introductory annual percentage rate window.
Many offer long intro periods — some close to two years — allowing you to pay a large debt without incurring interest. For instance, the Wells Fargo Reflect® Card and Chase Slate® card both have an introductory period of 21 months on purchases and balance transfers. (Reflect has a 17.49%, 23.99%, or 28.24% variable APR thereafter; Slate then has a 18.24% to 28.24% variable APR.)
The 0% period reduces the probability of debt and gives you a little wiggle room to make adjustments to your portfolio where needed.
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Are You Over 60? Here’s the Best Credit Card Strategy for You originally appeared on usnews.com