'Grumpy' Old Boomer

[exceladdict]

Obviously, I'll help if I can, especially if they run into difficulties but we want to enjoy our retirement and give some to charity if and when we are able. (Such a Boomer statement, I know).

Don't think this is a boomer statement at all! Assuming your kids are in their 40s or 50s, they've been through family formative years and are probably well into their own mortgages. It's the generations who comes after that who I fear will face huge difficulty entering the housing market without a bank of mum & dad.

Giving to a charity or cause important to you should be celebrated, whether that's those causes you currently volunteer with or something else. The amount we give as a percentage of our incomes is tiny (0.4% of income to DGRs on average) and we could make a huge difference as a society just by moving the needle a tiny bit on this.

 

[lovetravellingoz]

• Make sure you have enough credit cards before you retire, especially if you want to accrue FF points. I missed out and now cannot get another rewards card despite the value in my Super Fund.

I agree with this advice, BUT while I thought I had done so the problem is that both the Airlines and the CC Providers have kept changing things. Devalued earn rates, and increasing FF point costs.

So what looked ok for a self-funded retiree, no longer is from a FF perspective. The changes to getting points to Krisflyer may mean making another FF program my preferred one (My order was KF, Velocity, QFF). Now the cards I have allow points to go to different programs (TIP, So for people setting up for retirement allow for robustness with your CC choices), but it may mean that a card I do not have may now be better.

I have since retiring successfully added the ANZ Traveller (No added exchange rate fee so we put most international travel through it, good travel insurance that covered Covid for last years trips, but only low FF point earn) a while back. It was a 5 months battle of them knocking me back, but my challenging their decisions. Luckily when I applied I had a full post retirement Tax Return with an income high (mainly share dividends most of which is franked so virtually no tax is paid) enough to meet the cards requirements. The % minimum drawdown on my tax free super was also explained and shown, though you could tell that they did not really want to factor it in to what really should be an automatic yes.

Once I have thought more about what should be my new Number One FF Program, I might had to go to battle with the banks again to get new cards or cards. It would be nice to still be able to churn for points, but the difficulty in getting approved makes it more time consuming.

We have to move our (wife and I) Amex points balances over to KF by 3 Oct, as we have just done with our St George balances. So that will mean we have about 2 million at KF, 200K at Velocity and 2 million at QFF. So we are ok for several years of travel yet. But it very much looks like from now on that we will be steadily draining a diminishing bucket of points.

 

[mrsterryn]

@Telemachus I did wonder about defined benefits. We have two coming into our household .
Re OP we didn't think about other credit cards prior to returning. My retirement was a bit unexpected but fortunately we both have two decent points accuring cards
Husband is approaching seventy however does have major health issues (as far as insurance is concerned ) and he is going to stop overseas travel at 70 .
Offspring is as others have said well into his mortgage, if we kick on to when we hope lol his mortgage will more than likely be finished .
He thinks we should accrue debt lol and have a wonderful old age

 

[drron]

I think I may email my federal member complaining about banks discriminating against self funded retirees. Seems there is enough evidence.

 

[OZDUCK]

I had a similar problem a couple of years ago. Another retiree on a Commonwealth Defined Benefit indexed pension plus an allocated pension from Super. Owning an unencumbered house. A increase in the CC limit was rejected with no reason given.

 

[SYD]

Fortunately I have a reasonable array of CCs (points earning and a zero Int transaction fee card - 28° MC). Although I regret not increasing the limit on 28° before I left the Corp world and probably should have taken out a Coles MC for some form of points earn on Int spend)….

For most international spend I currently forgo the points in favour of saving 3% on every purchase. Since I’m travelling more I can get close to the monthly limit, so having a buffer makes sense. As mentioned above, the hoops and jumps latitude made me (and SYD+1) go through to unsuccessfully apply for a modest increase was insane. They were really awful to deal with if you don’t tick the right boxes in their system. Rather than “Computer says no - because…”, they just ask for more and more info because their “Lending experts” are incapable of making a decision.

 

[OATEK]

Like the OP, when approaching retirement I upped my low cost CC attached to my housing loan with Westpac (got it up to $16k), and then some months later applied for a BW Platinum Card for $20k limit. Some months later again applied for a 28 degrees card where they guaranteed approval for up to $6k which came through, and useful for those car rentals and similar where there are holds for 10 days or more.

A month after all this I started transition to retirement, cut back work to 3 days pw, and exited gracefully 2 yrs later.

Have not tried for a new CC since, but did receive an offer from BW to move to the World MC in the last 12mths (at age 72) and took that up for better points earn. And I have always, since obtaining the BW card, paid it in full each month.

Mrsoatek did not have a CC, and was only working 1 day per week in her last 2-3 years, so had little taxable income. But managed to get her a $4k CC from Westpac so that she has some access to credit when my cards get cancelled post mortem.

Would not want to upset the applecart so have not applied for any CCs to get sign on points.

As for other changes I made, sold the rental property near the beach, and used the funds to both pay off all debt (eg house loan) and to contribute to Mrsoatek's super so that she would have a reasonable amount of independent income post retirement.

Since covid we have been travelling to Europe twice a year to visit family, but will likely cut back to once per year from 2024, but stay longer.

Happily I still earn a modest income form a very specific consulting panel with NSWG that has helped us keep out of our savings for travel up to now, and to travel in J on the whole, which for our arthritic bodies is essential.

 

[StayGoldPonyboy]

Lovely post and wise words mel_world ... I am paying close attention.

I'm hoping to start winding down work next year.

Also want to start looking now for a stair free home, appreciating it might take years to find somewhere I love.

I have just closed two cards leaving me just CBA Ultimate (got it for OS spend after being turned down for Coles MC, a mystery that one). Now thinking to get some sort of Amex as one of my retirement cards.

I think my approach from now on will be to have two 'keepers' and one 'churn', in case I have to retire suddenly due to illness ... at least I will have 2 cards I like?

 

[Telemachus]

I think I may email my federal member complaining about banks discriminating against self funded retirees. Seems there is enough evidence.

I think it’s not 100% clear whether CC providers are consciously rating self-funded retirees as unacceptable risks, or we are just collateral damage in banks’ tightening up their responsible lending in the wake of the horror stories aired at the Banking RC. Insofar as banks are willing to discuss their credit criteria then the line is that the process is all about serviceability, they are under regulatory pressure not to extend credit to people who may be unable to repay (etc). None of which even begins to address the baffling rejections we are seeing which don’t seem based on objective assessment of risk. There is a relevant Choice article here which cites bank and ABA replies to questions; but those replies give little away.

Different retirees’ experiences in applying seem variable (of course). All other factors being equal, maybe some providers are more enlightened than others, as suggested by a couple of positive outcomes reported upthread.

Another strong influence on the application outcome is the knowledge and competence of the staff of the CC provider. I was dealing with an offshore call centre staffed by people who seemed to follow a script and lack essential knowledge – an all too familiar phenomenon for AFF members. So it may be the human factor as much as the computer algorithm that produces such perverse decisions.

 

[Scash]

How does that work?
Presumably you were applying for a business card
Did they want annual turnover, etc
Curious

Yes it was a business Amex Qantas Business Rewards card with rewards points credited to my QFF business rewards account. They did ask for income details and had boxes for both personal and business income. I had a small business plus was PAYG So I out my incomes for the 2021/2022 financial year. I did get a call from Amex looking to confirm my income as my actual business income portion was minor. I just said my real business income was a combination of both PAYG and business which she was happy with and card was eventually approved.

As mentioned they didn’t ask for proof of income (read in it that what you want!) but I’m assuming they base their decision off credit history and how long your ABN, GST has been registered etc.

 

[mel-world]

We were born in the 40-50-60’s.
We grew up in the 50-60-70's.
We studied in the 60-70-80's.
We were dating in the 70-80-90's.
We got married and discovered the world in the 70-80-90's.
We venture into the 80-90’s.
We stabilise in the 2000’s.
We got wiser in the 2010’s.
And we are going firmly through and beyond 2020.
Turns out we've lived through EIGHT different decades...
TWO different centuries...
TWO different millennia...We have gone from the telephone with an operator for
long-distance calls to video calls to anywhere in the world.
We have gone from slides to YouTube, from vinyl records to online music, from
handwritten letters to email and Whats App.
From live matches on the radio, to black and white TV, colour TV and then to 3D
HD TV.We went to the Video store and now we watch Netflix.
We got to know the first computers, punch cards, floppy disks and now we have
gigabytes and megabytes on our smartphones.
We wore shorts throughout our childhood and then long trousers, Oxfords, flares,
shell suits & blue jeans. We dodged infantile paralysis, meningitis, polio,
tuberculosis, swine flu and now COVID-19.
We rode skates, tricycles, bicycles, mopeds, petrol or diesel cars and now we
drive hybrids or electric. Yes, we've been through a lot but what a great life we've
had!
They could describe us as “exennials”; people who were born in that world of the
fifties, who had an analog childhood and a digital adulthood.
We've kind of “Seen-It-All”! Our generation has literally lived through and
witnessed more than any other in every dimension of life.
It is our generation that has literally adapted to “CHANGE”.
A big round of applause to all the members of a very special generation, which will
be UNIQUE.
-Author unknown

 

[cove]

Mrscove and I have just experienced Westpac’s KYC after about 40 years banking with them.
We go to open a term deposit and the bank need more information to open the new account. KYC stands for Know Your Customer. We don’t like sending emails that can help hackers so passports and drivers licences can be a problem.
After sending the two licences we have used the WA Dept of Transport site to lock access.
Our data had to go to Tasmania probably because the layoffs of banking staff are getting bigger each month.
We would not want to live in a smallish town that now has no bank branch and just a struggling Australia Post agency.

 

[PineappleSkip]

This looks like it warrants a life of its own for grumpy retired boomers. I’m one too.

Save as many points as you can before you retire

Alas, I saved a squillion radisson rewards points, and their retirement gift to me was to decimate their value in one of the most spectacular programme trashings of all time. A feature of our last holiday was burning most of what was left. And yeah I had too many Global Rewards points many years ago. What price a crystal ball?

I’ve found at least some will accept pension if you are self funding though mine is from a super fund (Australian Super) , they probably wouldn’t accept your SMSF.

Appreciate the advice on providers that do so. Keep it coming! Mrs Pineapple successfully applied for a DJs AMEX which buys petrol and groceries at a good earn rate. It also helped her credit rating as she had too many years as a trailing spouse with no credit to call her own. We hate to think what will happen when Latitude takes over the card.

I have a Commonwealth defined benefit pension for life. I’ve successfully applied for ANZ Black Visa

Same here, but they knocked me back. I already had about 50k in existing (80% unused) credit limits, which apparently told computer to say no.

 

[SYD]

Who saw this dribble in the SMH / Age today? (probably paywalled)

Boomers, I beg you: please stop spending

I know dining out is fun, and you want to treat your children and spoil your grandkids this holiday season. But right now is not the time to splurge. Let me explain why.

www.smh.com.au

I’m not a Boomer (a younger self funded semi-retiree) but this article seems to ignore the fact that pensioners and some self-funded retirees / boomers have seen 10 yrs of record low interest rates - so limited income and been forced to live on cat food while Millennials were dining on $20+ smashed avo for breakfast everyday waiting for their Boomer parents and Grand Parents to drop dead and leave a nice inheritance.

I also doubt the stats that this subset of Boomers are solely driving inflation. I suspect the ulterior motive of the article is to stop Boomers spending their kids inheritance!

 

[VPS]

Who saw this dribble in the SMH / Age today? (probably paywalled)

Boomers, I beg you: please stop spending

I know dining out is fun, and you want to treat your children and spoil your grandkids this holiday season. But right now is not the time to splurge. Let me explain why.

www.smh.com.au

I’m not a Boomer (a younger self funded semi-retiree) but this article seems to ignore the fact that pensioners and some self-funded retirees / boomers have seen 10 yrs of record low interest rates - so limited income and been forced to live on cat food while Millennials were dining on $20+ smashed avo for breakfast everyday waiting for their Boomer parents and Grand Parents to drop dead and leave a nice inheritance.

I also doubt the stats that this subset of Boomers are solely driving inflation. I suspect the ulterior motive of the article is to stop Boomers spending their kids inheritance!

What a crock - my millennial niblings spend more per week eating out including breakfasts during the week than I do as a self funded retiree

 

[SYD]

and by this evening the same Masthead has this contradictory but more correct coverage.

Blaming Baby Boomers for your money woes is unfair, lazy and wrong

Generational scapegoating places blame on a malevolent generation rather than the political and economic system that creates and perpetuates inequalities between rich and poor.

www.smh.com.au

 

[MARTINE]

Who saw this dribble in the SMH / Age today? (probably paywalled)

Boomers, I beg you: please stop spending

I know dining out is fun, and you want to treat your children and spoil your grandkids this holiday season. But right now is not the time to splurge. Let me explain why.

www.smh.com.au

I’m not a Boomer (a younger self funded semi-retiree) but this article seems to ignore the fact that pensioners and some self-funded retirees / boomers have seen 10 yrs of record low interest rates - so limited income and been forced to live on cat food while Millennials were dining on $20+ smashed avo for breakfast everyday waiting for their Boomer parents and Grand Parents to drop dead and leave a nice inheritance.

I also doubt the stats that this subset of Boomers are solely driving inflation. I suspect the ulterior motive of the article is to stop Boomers spending their kids inheritance!

I read it
AAA Grade compost
I am a boomer
Lets all stop eating out, traveling, getting haircuts and put the service providers out of work shall we. And give all our inheritance to the lost dogs home not our kids

 

[PineappleSkip]

Recently retired, work travel has dried up to nothing, as have the dollars. Now a disproportionate share of my income is channeled into status runs, mattress runs and the like, to maintain the status we boomers deserve. Proud to do it tough for the AFF team.

 

[SYD]

A few months ago we went to a friends 60th birthday dinner at Nomad. The place was heaving with 30 somethings and a few of us commented on the apparent lack of a “cost of living crisis“ with that restaurant’s clientele!

As an aside, it was very good food!

 

[Brissy1]

heaving with 30 somethings

Well it is in Surry Hills! And an excellent area for food at all price points (but I do take your point with Nomads)