It is always tempting to spend a bonus on luxury items or an extravagant trip to an exotic destination. A much better idea is to use it to help you get through financially tough times that may lie ahead. Our wealth advisers have put together a list of recommendations on how to get the most out of your year-end bonus.

Paper airplane bonus

Settle debts

Receiving a lump sum is a great way to reduce, or even settle, any outstanding debt.

Although a payment may not reduce your monthly instalments, it will reduce the number of payments you will have to make. To maximize your savings, you should settle the debt with the highest interest charge first.

Annual payments

Many service providers will offer a discount for upfront payments made for the year ahead; tuition fees are a good example of this.

Your year-end bonus can also go a long way in purchasing all the back-to-school supplies that your children will need for the upcoming year.

Maximizing tax breaks 

You can receive tax deductions for investing in a retirement annuity up to a certain limit.

If you live in the UK and haven’t maximized this tax deduction yet, you can invest a lump sum into a retirement annuity before 5 April 2016 to receive the tax break on your 2015/2016 return.

Be frugal

Year-end bonuses and salaries usually come early in December, making January the longest month of the year financially. Try to keep your December salary aside until after Christmas or you can save a portion of your year-end bonus. This will help you get through the last weeks before January’s salary clears.


There is no better time to start saving than right now. Seek advice from a financial planner who can assess your personal circumstances and advise on an appropriate investment for you.

Put your bonus to work. Contact our wealth team on +44 (0) 20 7759 7519 to set up a consultation with one of our advisers.

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