Traveling can be expensive — especially on a fixed income. If you’re currently paying for trips with cash, you’re likely being careful to stay within your budget.
The importance of not overspending on travel cannot be emphasized enough. However, this doesn’t necessarily mean all trips need to be paid for with cash.
Read More: I Asked ChatGPT the Best Travel Hacks To Save Money in 2025: Here’s What It Said
Explore More: How Far $750K Plus Social Security Goes in Retirement in Every US Region
GOBankingRates asked two financial advisors to weigh in on the most opportune way for retirees to pay for travel. Keep reading to find out what they had to say.
Also see a step-by-step guide to financially sustainable travel in retirement.
Credit Cards May Be the Better Way To Go
When it comes to using credit cards with travel perks, Alvin Carlos, CFA, CFP, financial planner and managing partner at District Capital Management, is a fan. Personally, he just got a Chase Sapphire Reserve Card, which offers a host of travel benefits, such as an up to $300 annual travel credit.
He said retirees who enjoy travel should consider travel credit cards, as the right card and strategy can offer free flights and other perks. When taking this approach, he said it’s important to treat the card like cash and pay your balance off in full each month.
Check Out: 10 Airline Rewards Programs That Provide the Most Value for Your Points
Travel Perks and Discounts
It’s not uncommon to receive deep discounts and bonus points for booking travel using a specific card, according to Omen Quelvog, MQFP, founder of Formynder Wealth Management.
“There are many people and groups who’ve made it their retirement ‘line of work’ to find the best travel credit cards and use them for incredibly discounted travel experiences year-round,” he said.
Carlos said the most popular credit cards for travel are the Chase Sapphire Reserve and American Express Platinum — and referred to the Capital One Venture X as the entry-level travel credit card.
Depending on the card, Carlos said you can get free perks like travel insurance, rental car coverage and airport lounge access, offering both peace of mind and notable savings opportunities.
“You can turn your points into free flights, hotel nights or even upgrades,” Carlos explained. “If you pay in cash, you’re basically leaving free perks and money on the table.”
Ultimately, Carlos said the ideal balance to strike is booking your trip with the right travel rewards card, racking up points and enjoying any built-in travel protections offered. From there, pay your balance off monthly and enjoy the perks offered by your card, he said.
But It Matters How You Book
The manner in which you book travel is also important, according to Carlos.
“You need to buy your flights, hotel, car rentals and cruises using your credit card’s online travel platform,” he said.
Credit Cards Aren’t for Everyone
While using a credit card to earn points and discounts on travel might sound amazing, Quelvog said it isn’t always the best choice for everyone.
“If you have a difficult time paying your credit card off each month, interest rates can really add up,” he said. “Also, many cards that offer lounge access and deep discounts also have an annual fee.”
He said those two reasons — and how frequently you travel — can justify using cash instead of credit.
More From GOBankingRates
- 5 Luxury SUVs That Will Have Massive Price Drops in Fall 2025
- I Help People Retire Every Day -- Here's the Most Common Retirement Mistake People Make
- How Much Money Is Needed To Be Considered Middle Class in Your State?
- 5 Types of Cars Retirees Should Stay Away From Buying
This article originally appeared on GOBankingRates.com: Cash vs. Credit Card: Here’s the Actual Best Way for Retirees To Pay for Travel
