You’ve worked hard, saved diligently, and made responsible financial decisions over the years.
You may be approaching retirement, recently retired, or navigating a major life change like divorce, widowhood, or downsizing.

But there’s one part of your financial life that’s often overlooked — even by otherwise well-prepared individuals:

👉 Your credit.

And no, this isn’t about chasing points, miles, or playing games with credit cards.
It’s about understanding how credit works — and how it can quietly support (or limit) your independence, flexibility, and peace of mind in retirement.

Many people we work with are surprised to learn that:

• you can have substantial savings

• little or no debt

• and still have a credit profile that isn’t working in your favor

Credit doesn’t disappear in retirement. It shows up when you:

• buy or refinance a home

• downsize or relocate

• need short-term flexibility

• plan for future healthcare or long-term care options

What Actually Makes Up a Credit Score (and What Doesn’t)

Your credit score has nothing to do with how much money you’ve saved or how successful you’ve been.

It’s based on five core factors:

• Payment history (35%) – Are payments made on time?

• Amounts owed (30%) – How much of your available credit are you using?

• Length of credit history (15%) – How long accounts have been open

• Credit mix (10%) – A healthy variety of credit types

• New credit (10%) – How often new credit is opened

This is why well-intentioned moves — like closing old cards or avoiding credit altogether — can sometimes do more harm than good.

Common Credit Mistakes We See in Pre-Retirees & Retirees

Let’s normalize this conversation — without shame.

Some of the most common missteps we see include:

• Closing long-standing credit cards to “simplify” finances

• Avoiding credit entirely out of fear or past experiences

• Carrying high balances unintentionally due to fixed income timing

• Taking out loans without a clear repayment strategy

• Assuming credit no longer matters once work income ends

None of this means you’ve done something wrong.
It simply means no one explained how credit fits into retirement planning.

How Credit Supports Long-Term Independence

Optimized credit gives you options, especially in retirement.

It can support:

• Home purchases, downsizing, or relocation

• Short-term liquidity without selling investments at the wrong time

• Better borrowing terms if needed

• Flexibility during unexpected life events

Credit isn’t about debt — it’s about having choices.

Simple Credit Strategies You Can Start Today

• Keep credit utilization under 30% (under 10% is even better)

• Avoid closing old cards unless absolutely necessary

• Be thoughtful about new credit inquiries

• Ask for credit limit increases strategically

• Know that credit can be rebuilt — meaningful improvements often happen within 3–6 months

Final Thoughts

Credit isn’t about status.
It’s about strategy, flexibility, and confidence.

As you plan for retirement — or navigate a new chapter — your financial life should support the way you want to live, not create unnecessary stress.

You’ve worked hard for this season.
Let’s make sure every part of your financial plan is working for you.

🎧 Listen to the full podcast episode on Retire & Live Well.