Annual leave payout vs. adding to time of service


Q. I am planning to retire soon. I have over 200 hours annual leave. Is it better financially to take the lump sum for the annual leave or use one month annual leave and extend my time of service one more month (and receive a lot smaller lump sum payout)?

A. It’s impossible to say from the information provided. Figuring it out will require a comparison of your retirement income streams under the two scenarios against the performance of the money in your investment portfolio. I suggest that if you’re not sure, and maximizing your lifetime standard of living is the goal, that you opt for the delayed retirement and smaller payout. Keep in mind that additional income from continuing to work should offset the loss in your leave payout.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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