Ask the Expert: The ongoing credit card issue affecting retirees
Question 1
I wish I had read your answer on credit card applications prior to retiring.
I have nearly $9 million in assets, including $3.5 million in bank accounts (my share), no debt other than one credit card that I pay off in full monthly, and I have had credit card applications rejected by both Westpac and ANZ.
It is extremely frustrating. Twenty years ago, when employed with half the income, I could get the same credit card as one that I have had my application for rejected. Do you have any other suggestions.
Thanks, Peter
Hi Peter,
This has been an ongoing issue – older Australians being denied a credit card, even when they have large assets.
It’s finally starting to get some momentum and hopefully it will change soon.
I directly asked Westpac about this, and a bank spokesperson responded as below:
You might like
“We’ve recently introduced a more flexible credit criteria for those customers with significant funds in savings or super, but who might be retired or only working reduced hours. To be considered, applicants need to be:
- Aged over 65
- Be a Westpac customer for two years or more.
Westpac supports responsible access to credit, with each application assessed on its individual merits. We’ve recently updated our approach in some cases to consider a broader range of customer assets, helping us make fairer and more balanced decisions.”
In August 2025, I advised that even if you have a good credit history and are otherwise in a strong financial position, financial institutions in many instances will not provide lending for seniors. This includes home loans, personal loans and credit cards.
You can try to contact the institution and ask for the decision to be reviewed. Sometimes when an actual human looks at it, it does get approved.
Otherwise, you can look at a debit card. Or, contact National Seniors Australia for advice – it also offer its own credit card.
Question 2
We recently sold our house of seven years (not 10, so unable to make use of the downsizer rules) and bought smaller property.
We would like to put the profit, $180,000 (currently in the bank) into my husband’s super fund.
I’m on the age pension. He is retired and draws a small pension each fortnight. He is 66 and hopes to get a part pension later this year.
Can he contribute the $180,000 into his current super or does he have to open a new super accumulation account? The advice is confusing.
Funds must be paid into an accumulation account first. Unfortunately, they can’t be put straight into a pension.
Stay informed, daily
He can make a contribution to an accumulation account, roll back his existing pension into the accumulation account, and then start a new pension with the combined funds.
This is a little fiddly, but your super fund can assist.
There are some funds and lobby groups trying to make this process easier.
Also please be aware of the non-concessional superannuation caps as shown below.
Question 3
What is the best way to transfer super from one superannuation fund to another?
Transferring and/or consolidating super funds (technically called “rolling over”) is fairly easy these days.
If you do not yet have a super account with your new chosen fund, then you need to open a new account via its website or give it a call. It can then also assist in transferring over all of your other super funds into the new account.
If you already have an account open with your chosen fund, then the easiest way is to:
- Log in to MyGov
- Select ATO from the linked services
- From the ATO menu, chose “super”
- Find the fund you want to transfer out of and click “transfer out”
- Choose the super fund you want to transfer into (you must have already open this account)
- Confirm your details
- Review and submit
When changing super funds, ensure you are aware of any benefits that may be lost and other elements such as insurance cover and inform your employer(s) of your new super fund name and account number so that future contributions go to the right place.
Craig Sankey is a licensed financial adviser and head of Technical Services and Advice Enablement at Industry Fund Services.
Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.
Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.
