Use It or Lose Value? The Truth About Sick Leave Before Retirement

Federal employees are often encouraged to save as much sick leave as possible—but is holding onto a huge balance until retirement really the best strategy? In this episode of Rayna Retirement, Rayna Reyes explains how unused sick leave factors into your federal retirement calculation and why employees approaching retirement may want to think strategically about how they use it. From medical and dental appointments to family care, bereavement, FMLA and other eligible purposes, your sick leave can be a valuable benefit while you're still on the job. Rayna also walks through an example showing the difference between using legitimate sick leave while remaining an employee versus simply carrying the entire balance into retirement—and why the distinction can matter for your paycheck, TSP contributions, matching funds, health benefits and overall retirement plan. The takeaway: don't misuse your sick leave, but don't automatically assume that saving every hour until retirement is the smartest move, either. Know the rules, schedule the care you need and make your accumulated benefits part of your overall retirement strategy. -- Contact Rayna directly at 850-450-6500 Or call the American Federal Benefits Consultants team at 1-800-872-8857 Visit: AmericanFederal.org -- YouTube: https://www.youtube.com/@RaynaRetirement Rayna Retirement is the go-to podcast for federal employees – or anyone – looking to make smarter financial decisions with clarity and confidence. Hosted by Rayna Reyes, co-founder of American Federal Benefits Consultants, this show simplifies the complexities of retirement, benefits, and financial planning. Whether you're navigating your FERS or CSRS pension, maximizing your TSP, or seeking expert advice on 401(k)s or IRAs, Rayna is here to guide you every step of the way. Tune in for practical knowledge, ethical solutions, and expert insights as you prepare for a secure and fulfilling retirement.