How to prove income for new CC applications when retiring using savings / UFPLS.

vacheron

Just a thought that occurred to me this morning.

I'm an avid Stoozer for many years who is planning to retire in the next few months.

Come this point, any new credit card applications will ask me my income (which can include pension income).

Now, back in the days of the endowment / DB pension, this was an easy answer, but now people are retiring using their own savings in a very flexible manner.

In my case I will be selling S&S ISA's to top up a 2-3 year cash buffer until I am 57, at which point I will be doing the same but from funds in my DC pensions using UFPLS.

In both cases I can use this cash buffer to paying myself whatever income I wish.

Despite applying for at least 40-50 cards over the last 10-15 years, no company has ever asked me to prove my income, but how would they do this when you are flexibly drawing down your pension in large irregular amounts, from which you can then pay yourself whatever income you want, whenever you want? 🤔

mta999

I believe you can use the interest from the cash buffer as income but not the cash buffer itself

Withdrawing money from your cash buffer savings account does not count as 'paying yourself income'

born_again

Savings is not income.

Brie

If you were applying for a card that is associated with a bank account you have (i.e. you have a Barclays account and then decide to apply for a Barclaycard) the bank would be able to look at your transactions in your bank account to assess if you are telling the truth about your income. Presumably that would be via some bot rather than a real person sorting through your bank statements.

Ultimately I would suggest that you apply for whatever you need prior to retiring and then hope that whatever other cards you have come up with enough offers for you until you do actually have an income again.

vacheron

Thanks all.

Purely from the "credit worthiness" perspective, it seems strange that diminishing your savings in a SIPP to cover your living expenses could be stated as income, but diminishing your savings in an ISA to do the exact same thing cannot.

@Brie, yes, I've pretty much maxed everything out (as I usually do), so I won't need to think about more 0% cards for another 30-35 months. I can happily live without them, but why turn down free money if you don't have to. 👍️

Grumpy_chap

I recently had a kind of similar / related query to the OP:

https://forums.moneysavingexpert.com/discussion/6663591/amex-eligibility-cashback-everyday-credit-card

Essentially, what to state as income when that income is not regular PAYE salary.

In my case, I stated as income the amount I had worked out for my 2025-26 SA return and that was accepted.

I would also imagine there is a standard suite of questions that the CC system would generate once the applicant ticks the box as "retired" - I am not retired so can't comment with any certainty. I am sure there are enough retired folk in these forums that have successfully applied for new CCs and can advise how to present income.

ZeroSum

https://forums.moneysavingexpert.com/discussion/comment/81985808#Comment_81985808

I've got a few like that but aren't accounts that I pay earnings into, so wouldn't know.

Barclays is probably a poor example to use, as they treat them as separate businesses. I had a query on my Barclaycard, and my local Barclays branch said it had nothing to do with them, and had to book an appointment at an inappropriate time when the rep came once a week.

kempiejon

no company has ever asked me to prove my income, but how would they do this when you are flexibly drawing down your pension in large irregular amounts,

Why might they ask for proof? I have been declaring an amount above my employment salary for many years when applying for credit cards to include my investment income.

ZeroSum

https://forums.moneysavingexpert.com/discussion/6666800/how-to-prove-income-for-new-cc-applications-when-retiring-using-savings-ufpls

Flexible drawdown from pension pot is still classed as income as its taxable. I guess youd just declare an estimated annual average. Its unlikely youd ever be asked to prove it if its a sensible amount.

Drawing down from an isa pot isnt classed as income (well the capital gains will be if in s&s, and any interest)

Brie

https://forums.moneysavingexpert.com/discussion/comment/81986209#Comment_81986209

Someone not in a Barclays branch (i.e. customer service call centre etc) can view all of Barclays Bank associated accounts for any of their customers. So your current account, your Barclaycard, your mortgage etc. I'm not sure they can access the Barclays Wealth or Barclays International accounts as those are separate organisations but they may be able to see that you have those enough to refer you to the other service teams.

Diaz09

Since others have covered the income vs savings distinction, here's a practical angle - some lenders are surprisingly flexible with retired applicants if you can demonstrate regular, sustainable withdrawals. I'd suggest applying with banks where you already have accounts and a good history, as they can see your actual cash flow patterns. Also worth timing applications before you officially retire if possible, as employment status alone can sometimes trigger automated declines even when your financial position is actually stronger than many employed applicants!