The 75 million Americans who are retired or are nearing retirement represent an untapped opportunity for credit card issuers, according to Corporate Insight Inc.
The New York market research firm said in a report that there is a scarcity of rewards-based credit cards designed for affluent retirement-age consumers.
"Retirees are one of the fastest-growing demographics in America, with tremendous spending power. Yet there are surprisingly few products designed for this niche," said Doug Miller, Corporate Insight's senior analyst for banking and cards. "If you look at the number of people set to retire over the next decade, there seems to be an opportunity for the more ambitious and inventive card issuers to offer rewards programs tailored for this group."
Issuers that are targeting the demographic include JPMorgan Chase & Co., which for several years has offered the cobranded, no-annual-fee AARP Rewards Platinum Visa. Fidelity Investments last year unveiled the Fidelity Retirement Rewards American Express card, which carries no annual fee and offers two points for each dollar spent. The points are automatically swept into customers' individual retirement accounts.
"This is a somewhat complex market because retirees' needs vary widely, but currently only a handful of issuers are tackling it," Miller said.
Corporate Insight released the report last month.