So far in 2023 we have seen a raft of retirements of sports people from a range of different sports. These include Stuart Broad who announced his retirement following the last game of the recent Ashes series, the Welsh rugby internationals, Alun Wyn Jones and Justin Tipuric and footballers, Cesc Fabregas and Mesut Ozil.

It is generally accepted that the transition from professional sports to life after sport can be extremely challenging. Many professional sports people miss the structure and routine of training and playing the sport that they have dedicated their life to. They miss the competition and the camaraderie and, as such, some sports people can face health, addiction or financial problems.

Many former athletes feel a loss of identity when they retire and the initial period after retirement can be particularly difficult especially when only a relatively small number of athletes can actually choose when they retire with most forced to give up the sport that they love due to injury or not having a contract renewed.

Life Skills

Athletes over their sporting career will have acquired and developed many transferable skills such as discipline and consistency. They tend to be highly motivated and want to strive for perfection and achievement.

These skills can lend themselves to a range of career choices after sport although many former athletes remain connected to their previous sport in some way. For example, a number of former sports people will be involved in broadcasting or sports analysis. Others may return to the sport in a coaching or management role.

A number of former athletes become entrepreneurs and investors with some setting up clothing or media brands or sports management companies.

For those athletes who have been involved in their sport since an early age, retirement may see them return to education in order to obtain the qualifications to embark on a different career path.

Planning for Life after Sport

It can be particularly difficult for a successful athlete to plan for life after sport because they tend to be so focused on preparing for the next game or tournament. Taking time out to consider what their future life might look like might be something they don’t want to contemplate even though it can be extremely valuable.

For some sports, the money involved can be huge and there is an assumption that the athlete will be financially comfortable for the rest of their life and therefore they don’t have to plan for life after sport. This assumption fails to acknowledge the psychological aspects of retiring from sport and the importance of having something to retire to. It also fails to address the fact that someone retiring in their thirties may need their money to last another sixty years or so. Whilst they might have millions in the bank, is that sufficient to maintain the lifestyle they are used to for the rest of their lives if they are no longer earning any money. Also, many retiring sports people don’t have millions in the bank.

It is also important to consider the impact of particular life events on a former athlete’s finances, for example starting a family or going through a divorce.

Financial Planning

Many professional sporting bodies are now more aware of the issues that sports people face when they retire and can offer a range of support.

From a financial planning perspective, it is important that athletes have an understanding of where they are financially early on in their careers and can make sensible financial decisions to accumulate sufficient wealth to help them transition into retirement.

It is also important to consider what retirement might look like for a retiring athlete and whilst there might be a financial cushion to begin with, how long will this last and how much does a former athlete need to earn to maintain their current lifestyle.

Having a financial plan and making sensible financial decisions are crucial in helping sports people transition into retirement.

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If you are a sports person wanting to begin your financial planning journey, please do contact us.

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