NEWSLETTER WEEKLY/SUMMER LEAVE BLUES
Summer has officially come out to play and we are all ready to have fun in the sun. Summer also means vacations and travel. Those anticipating retirement should be cognizant of balancing their resources between now and retirement. That simply means keeping in mind the added value your annual leave can bring to your retirement future. Annual leave is money, money you can use to tie you over until your actual annuity check kicks in. Often times until the Office of Personnel Management completes the entirety of processing your retirement application, you may receive a check that is actually less than your full annuity for a period of time.
Your annual leave check can make the transition much easier as you settle down financially into your next adventure of retirement in comfort and security. If you are planning on taking a road trip this summer, be it an extended weekend or longer, don’t bother to drive your own car. Rent a car and although you have car insurance on your personal vehicle, pay the extra few dollars to purchase insurance from the rental company. If something happens to the car, the entire worry would be off your shoulders and in the lap of the rental company where it belongs. For a few extra dollars, who needs the aggravation of bringing your personal insurance coverage into the rental car situation.
Another summer time tip – if you intend to travel abroad be sure to do a health insurance checkup. Look at the coverage offered by your FEHB and your Medicare if applicable to assess coverage when traveling abroad. If your plan does not cover you abroad, then check with an insurance carrier to purchase insurance specifically for that purpose. However, those federal employees in the Foreign Service have a plan that has direct billing arrangements with hospitals in Brazil, Columbia, Germany, China, Panama, Italy and Korea. But when traveling abroad it is always a good idea to check your plan coverage.
Enjoy your summer but be careful about protecting your annual leave so that it can benefit you as you head into retirement. Also, let’s not forget about the value of sick leave when anticipating retirement. Previous to the new policies governing sick leave, particularly for FERS employees, it was only thought of as leave to use during an illness. Now sick leave can make your annuity check more robust, by extending your years of service. Is sick leave just as important as annual leave when it comes to retirement? Yes, it is even more valuable because it impacts your annuity over the life-time of your retirement. Your annual leave check is a one time lump sum payment, but together your annual and sick leave can strengthen your financial picture in retirement.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli
