May 03, 2021

Luke on 2CC – Annual leave and retirement – Should you take it or cash it out?

19 minutes

Retirement planning – What should you do with your accumulated leave?

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 30 April 2021. This week’s topic: What to do with accumulated leave before retirement?

Luke and Leon start the conversation around thinking about your own end of financial year planning. As Luke says, if you’re always early you’re never late – so don’t leave your end of year planning too late. The end of financial year is fast approaching.

Have you thought about what you will do with your annual leave before you retire from work? Many people don’t think about it, but there are some tips and tricks to consider to make the most of your options. Seek advice if you need help.

Key highlights include:

Start with your own ‘why’ – what are you looking to achieve

Also consider when, if you retire before the financial year, cashing it out will add to tax implications for the current financial year

If you carry it over to the next financial year, you might pay less tax

Think about long service leave too, while you’re taking it, you continue to accumulate annual holiday leave

Can I take all my leave and then retire?

Can taking leave help me try out retirement before I retire?

If I cash out my leave, can I add it to my super? Yes you can but be aware of your limits

You can only cash out annual leave and long service leave

Sick leave cannot be cashed out, you either use it or lose it

How can people make the most of their leave payments?

Are there special issues you need to consider for defined benefit schemes

Luke shares his key strategy tips

Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.

Listen to the Podcast right now

https://www.envisionfinancial.com.au/wp-content/uploads/2021/05/The-Strategy-Stacker-Luke-Talks-Money-30042021.mp3

Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’

Do you need advice around annual leave and retirement?

Consider what to do with annual leave before you retire. Seek financial advice if you need help.

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Cashing out annual leave and retirement can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and objectives.

Make an appointment to confidentially discuss your own super, investment, insurance or retirement goals. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.

Luke will return to talk about financial planning on 2CC next Friday fortnight. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.

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By Luke Smith