Aflac Retirement Travel: Credit vs. Cash Decisions

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'Aflac employees weighing credit cards versus cash for retirement travel should remember that disciplined card use can add value through perks and protections, but simplicity with cash may better suit those seeking clarity.' - Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Aflac employees approaching retirement can benefit from comparing the added travel perks of credit cards with the straightforward budgeting of cash, an essential balance for aligning spending habits with long-term retirement goals.' - Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. The advantages and drawbacks of using credit cards for retirement travel.

2. When cash may be the better option for managing travel expenses.

3. How to weigh discipline, benefits, and long-term retirement goals when choosing a payment method.

One of life’s greatest pleasures is travel, but it can be costly. For Aflac employees preparing to retire, the choice between credit cards and cash for travel costs can influence outcomes over time. Many travelers view paying with cash as a disciplined way to stick to a spending plan. While that approach has merit in certain cases, relying only on cash can also mean forfeiting useful perks, built-in benefits, and possible savings that come from using an appropriate travel credit card.

The Case for Credit Cards

Travel-oriented credit cards can offer meaningful advantages. Many of these cards deliver perks such as annual travel credits, discounted airfare, built-in travel-related insurance coverage, and access to private airport lounges. Over time, these benefits may amount to hundreds or even thousands of dollars in value.

It’s critical to treat a credit card with the same discipline as cash. By paying the balance in full each month, users can sidestep interest charges and enjoy the perks without accumulating debt. For those who carry balances, interest can quickly eat into the value of the rewards.

Benefits and Discounts for Travel

Credit cards unlock discounts or rewards when booking hotels, flights, cruises, or rental cars. Some Aflac retirees who travel often find that rewards points may fully cover trips or upgrades. Common offerings on travel rewards cards include:

• - Travel-related coverage for delays or cancellations

• - Rental car coverage for theft or damage

• - Airport lounge access to enhance comfort during long waits

• - Rewards points redeemable for airfare, hotels, or upgrades

When paying with cash, these value-adds vanish, meaning travelers may receive less return on their spending.

Booking Through Preferred Channels

To receive the full value of card perks, it’s often necessary to make reservations via designated travel portals. This applies to flights, hotels, rentals, and cruises. If you bypass these channels, some rewards or coverage may not apply, reducing the total benefit of using the card.

When Cash Might Be a Better Fit

Although credit cards deliver many advantages, there are circumstances in which cash may be more practical. If a person does not pay off balances in full, high interest costs can outweigh rewards. In addition, premium travel cards often carry annual fees, which may not be worth it for those who travel infrequently in retirement.

In such situations, using cash offers a direct path to staying debt-free and within budget. For some, the clarity and predictability of cash outweigh the complexity of tracking card perks.

Final Thoughts

Your discipline and travel habits will shape which payment method fits best. A well-chosen travel card can provide additional value, built-in coverage, and rewards that stretch what your retirement travel budget can deliver. That said, paying with cash remains a dependable choice for those focused on simplicity.

According to a recent AARP survey, 47% of adults aged 50 and older who carry credit card debt use their cards to cover everyday expenses. ¹ Of those, 48% owe $5,000 or more, and 28% carry balances of at least $10,000. ¹

By comparing both methods, Aflac retirees can assess the long-term tradeoffs of travel cards versus the consistency of cash. Whether focusing on convenience, discipline, or stretching retirement resources, the aim is the same: making each trip financially viable and memorable.

Analogy :

When using cash for travel expenses in retirement, it’s like traveling with only a basic carry-on—clear, uncomplicated, and with no surprises. Using a rewards credit card is more like having luggage with hidden compartments—each compartment offers benefits like coverage, upgrades, or lounge access. Both approaches take you where you want to go, but one offers additional levers that may expand the reach of your retirement travel budget.

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Sources:

1. AARP. “ New AARP Survey Highlights Credit Card Debt Among Older Americans .” 10 Mar. 2025.

Other Resources:

1. Consumer Financial Protection Bureau.  Credit Card Rewards: Issue Spotlight . May 2024,  https://files.consumerfinance.gov/f/documents/cfpb_credit-card-rewards_issue-spotlight_2024-05.pdf.

2. Vaughn, Harlan. “Why You Should Use Your Issuer’s Travel Portal.”  Bankrate , 29 July 2025,  https://www.bankrate.com/credit-cards/travel/why-use-issuer-travel-portal/.

3. Hurd, Aaron. “Trip Delay Insurance Explained.”  NerdWallet , 18 July 2025,  https://www.nerdwallet.com/article/travel/trip-delay-insurance-explained.