In total, almost half (45%) of all workers opt against taking their permitted time off, with an average of five days going unused every year.
Only half of men take all their allowance and two-thirds (61%) of women do so, according to a study of 2,000 working adults surveyed by NatWest Premier.
However, needing to use annual leave for childcare and maternity leave are factors in the increased time taken by women.
When taking time off, people who have worked all year for their annual leave are not making the most of their break either, as 42% of all employees are still keeping on top of their workload while away. This rises to 66% for those earning over £100,000.
The main reason cited for logging on while abroad is to reduce the stress when they log back in on home soil, and the more someone earns, the higher the likelihood of this happening.
Over two-fifths (41%) of workers with a salary of £100,000 or more work while on holiday, compared to 34% of those earning less than that.
Meanwhile, if you are in a position to book a holiday during the rest of the summer, travellers have been warned against scams while booking trips abroad, which tripled in the first half of 2024.
Laura Newman, head of financial planning at NatWest Premier, said: “You’ve got your annual leave allowance, want to take a holiday, but don’t know what help is available, and have no time to plan it – logistically or financially – meaning it never gets booked, and the much-needed R&R doesn’t happen. It can be a cycle, and our latest research shows many are guilty of this.
“However, what many don’t realise is that your bank can help with financial savings when it comes to booking holidays. Banks often have travel benefits, planning advice, and services available specifically for holiday planning.”
Newman also provided four tips to ensure you can make the most of your annual leave without breaking the bank.
Four tips to save for a holiday
1. Work backwards: To successfully manage your finances and budget accordingly, I’d advise working out your holiday goals and associated costs. A two-week beach holiday, a city break, or an island-hopping adventure – whatever your holiday goals, work out approximate costs for each and what’s achievable within your annual leave allowance. Once you have your costs on paper, it’s easier to work backwards from there and plot out the steps to get there.
2. Consistency is key: Your holiday goals are set, now start planning and mapping out how to reach them. It’s crucial to ensure you crack any bad spending habits. Be consistent and get into a regular savings habit.
3. Seek financial advice from your bank: Many can be unsure what financial planning information is available to them. Check to see what your bank offers for free. There will likely be ways that you can make your money work harder. Go in with your holiday plans, and a financial adviser can help with how to plan your finances accordingly.
4. Seek holiday advice from your bank: What many don’t realise is that banks may offer services that can specifically help with holiday planning, like free airport lounge access, free travel insurance, and no foreign transaction fees.
