Do you often find yourself at the end of the year with unused vacation days?
If so, you’re essentially working for free.
Surveys show this is a widespread issue: one report found that only 23% of workers used all their vacation days in the prior 12 months, meaning 77% left time unused. Other research indicates the average U.S. worker uses less than half of their paid time off. Financially, this adds up—one study estimated American workers lose roughly $600 a year in forfeited benefits by ending the year with unused vacation and paid time off.
I used to be guilty of the same habit. When I worked for others, I rarely used all my paid vacation. I would intentionally save a few days at year’s end because I worried that taking every allotted day would make me seem ungrateful or as if I disliked my job. In hindsight, that thinking was misguided. Vacation days are part of your compensation, and leaving them unused is the same as accepting less pay for the work you do.
These trends are especially concerning given that U.S. workers already tend to work longer hours and receive fewer vacation days compared with many other countries. If you’re like most people, you may be leaving valuable time off unused. Here are several compelling reasons to start taking all your paid vacation days.
You’ll be happier taking more vacation days.
Research links increased vacation use with higher well-being. People who use more than 75% of their vacation time report significantly higher happiness levels than those who use less than 25%. It makes sense—time away from work gives you a chance to relax, recharge, and enjoy life. Whether you travel or stay home, vacations can reduce stress and increase overall satisfaction.
You deserve the vacation time.
Paid time off is part of your compensation package. Employers include vacation policies because breaks from work benefit both the organization and employees. By leaving unused vacation days, you are effectively giving away part of your pay. Try calculating how many days you leave unused and how much income those days represent—seeing the dollar amount can be a strong motivator to use your time off.
You’ll perform better at work.
Employees who take their vacation days often return more motivated, creative, and productive. Regular breaks help prevent burnout and give your brain time to recover, which improves performance when you’re back on the job. That’s a win-win for both you and your employer.
You’re hurting your health by leaving unused vacation days.
Consistently avoiding time off can negatively affect your health. People who rarely take vacations are more likely to experience stress-related illnesses, depression, poor fitness, and even higher cardiovascular risk. Using your vacation time can improve both physical and mental health, while also providing opportunities for enjoyable experiences and rest.
You don’t have to go broke taking time off.
Many workers skip vacations because they think they can’t afford to travel. But a vacation doesn’t have to mean expensive travel. Staycations—spending time exploring your city or simply relaxing at home—are valid ways to use paid time off. You can also use days off to handle personal tasks, rest, pursue a side project, or recharge at low cost. With some planning, you can take meaningful time off without a large expense.
How to start using all of your days
Make this the year you use your full allotment of paid time off. Taking your vacation days can reduce stress, improve performance, and boost your health. Here are practical tips to ensure you actually use them:
Be strategic. Don’t burn all your vacation days in January, but plan them across the year so you have flexibility. If sick and vacation days are shared, reserve a few for unexpected needs later in the year. Some people find success by scheduling regular long weekends—taking Fridays off—or adding half-days to create frequent shorter breaks.
Take a personal day. A vacation day doesn’t require travel. Use a paid day off to rest, catch up on life, pursue hobbies, or work on a side project. Personal days can be just as restorative as trips and are often easier to fit into a budget.
Accept that work will always exist. One reason people avoid taking time off is the fear work will pile up. Communicate with colleagues to arrange coverage, complete critical tasks before you leave, and set clear expectations. Delegation and planning make breaks feasible while keeping work on track.
Remember it’s part of your compensation. You wouldn’t let an employer keep a week’s paycheck for no reason, so don’t let them keep paid days off. If your job includes paid vacation, use it—you earned it.
Have you left unused vacation days on the table? What’s your company’s vacation policy?