Should I Use Up All My Leave Before I Retire?

This is a very common question and the answer is not always a simple one. Every situation is different and each case needs to be carefully considered on an individual basis, it could even have a different answer between husband and wife.

There are three questions you need to ask yourself:

How many weeks have I accrued?

One of the main advantages of using up your annual and long service is that while you will often accrue more leave while you are on long service or annual leave, this is especially worthwhile if you have a large number of weeks saved up.

Do I need to pay off a debt?

Often someone may have a debt, most notably a mortgage that they wish to pay out upon retirement and this can then make it attractive to take the lump sum. Sometimes this can be the right choice for you but it can also result in paying more tax.

What does my tax situation look like?

Taking into account the rest of your financial situation and how a lump sum will affect your tax situation is very important. A financial adviser can help you to make a decision that will most benefit you.

Feel free to contact us for help and we can help you make the right decision.


by Simon Tworek

Simon is a Financial Adviser at Insight Wealth Planning. He has an advanced diploma and masters in Financial Planning and has a strong technical background.


The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.