The baby boom generation, unlike the preceding generation, grew up with credit cards. Baby boomers learned to charge their purchases and, often, to earn reward points that can be converted to gift cards and frequent flyer miles.

Rather than earning gift cards and frequently flyer miles, saving money may be higher on the list of priorities for many baby boomers as they near retirement age. Many are considering the potential financial benefits of a reverse mortgage, which allows homeowners age 62 and older to access the equity in their home to pay bills or simply for the security provided of a line of credit in case of an emergency. Comparing reverse mortgage lenders online provides senior homeowners with information on this retirement option.

New Rewards Alternative

In the meantime, baby boomers may want to investigate the recently introduced "retirement rewards" programs offered by some credit card issuers. Instead of earning points for gifts, the credit card users can earn cash to deposit in an individual retirement account or savings account.

For example, a recent Wall Street Journal article says that the Fidelity Investments' Retirement Rewards American Express card allows users to earn two points for every $1 charged. When 5,000 points are earned (or $2,500 spent), $50 is sent into a designated investment account. Other cards, such as those from Ameriprise, offer customers 1%-1.5% of all purchases for retirement funds.

As with any credit card, users should carefully read the fine print and evaluate whether the rewards are worth the expenses. Typically, cardholders must maintain an account with the card issuer and the savings can only be transferred into that account. Consumers who carry a balance should check to see whether the interest rate is competitive with other cards and compare fees.

As savings rates increase across the country, consumers are looking for every possible way to add to their cash reserves for the future. Switching to a credit card with retirement rewards may be one more small step toward security.