Card application when retired: How to show income

andysm

Some background: I recently retired. My plan is to live off cash savings until next April when I will start drawing down my private pension. I want to take a holiday later this year and rent an apartment for a few weeks. Some of the apartments are pay on arrival, but my HSBC credit card is expensive for travel spending so I wanted to get a cheaper card for travel.

The card I wanted to apply for (Barclays Rewards) has a question about employment which I can answer with 'retired', but they also want to know my monthly net and annual gross income. Since I am currently living off savings I technically don't have an income, not sure how to answer the questions. I reckon I need around £1800 - £1900 net per month, so I could put that figure, but if they ask for evidence of this 'income' how will I show that?

elsien

I would have thought the accurate answer is that you do not currently have an income. 

Putting down your spending as income, as you’ve already found, isn’t going to be going anywhere.

sausage_time

I'm in a similar position (congratulations on your retirement).  I recently applied for a 0% BT card (RBS) and put zero as my income - and was accepted!  I already have a RBS card in good standing, so maybe that helped.  Moved a hefty Amex balance over to the BT card.

If you have no luck with a good FX credit card you can always apply for a Chase account with a Debit card (no FX loading and 1% cashback on most items).

la531983

andysm said:

 I reckon I need around £1800 - £1900 net per month, so I could put that figure

Well no, as its not income. You could go out later on this afternoon and blast all of your life savings on a Bentley. 

andysm

elsien said:

I would have thought the accurate answer is that you do not currently have an income. 

Putting down your spending as income, as you’ve already found, isn’t going to be going anywhere.

Yes, I think I will just have to take the hit on my HSBC card.

andysm

sausage_time said:

I'm in a similar position (congratulations on your retirement).  I recently applied for a 0% BT card (RBS) and put zero as my income - and was accepted!  I already have a RBS card in good standing, so maybe that helped.  Moved a hefty Amex balance over to the BT card.

If you have no luck with a good FX credit card you can always apply for a Chase account with a Debit card (no FX loading and 1% cashback on most items).

Thanks, I have a Starling debit card which is similar without the cashback.

Nasqueron

Don't lie on the application - you don't have income, you have savings, savings that could be spent in an instant and the last thing you want is a CIFAS marker for fraud for the next 6 years

andysm

la531983 said:

andysm said:

 I reckon I need around £1800 - £1900 net per month, so I could put that figure

Well no, as its not income. You could go out later on this afternoon and blast all of your life savings on a Bentley. 

Yes this is true, but even when I am drawing down my private pension I could theoretically withdraw the whole pot and blow it on a house, so does that mean I won't really have an income until I start getting the state pension?

sausage_time

When you drawdown you will have to declare the non-tax free part as income.  So you will definitely be able to declare that in future.

elsien

If you are getting a regular monthly income from a private pension then you put that down as income.
If you withdraw the whole lot and blow it on a house, then you don't.
It's not complicated. 

Nasqueron

andysm said:

la531983 said:

andysm said:

 I reckon I need around £1800 - £1900 net per month, so I could put that figure

Well no, as its not income. You could go out later on this afternoon and blast all of your life savings on a Bentley. 

Yes this is true, but even when I am drawing down my private pension I could theoretically withdraw the whole pot and blow it on a house, so does that mean I won't really have an income until I start getting the state pension?

Most people wouldn't do that, just as most people wouldn't quit a job just after taking on a mortgage, with pensions or salary, it's a normal regular income for the majority because they need it to live on. Savings are for life's pleasures or emergencies, not an income, it's assumed if you have them you could spend them if you need, hence they are not treated as income.