By Constantinos Massonos, Contributor
Whether playing in high school, college, or at a professional level, athletes know that the day they will have to hang up their jersey will eventually come. Never playing the game they love in the same way can be devastating, but searching for a path in life where their talents can be utilized like they once did in sports, can be extremely challenging too.
Athlete retirement readiness refers to the state of preparedness that professional athletes should have at the end of their playing years, to be able to sustain their lifestyle after retirement from sports and secure their financial freedom. Crafting a secure financial future involves not only financial planning but also preparing for a new career, getting emotionally prepared and establishing a post-athletic identity.
Financial Planning is of course pivotal and becomes increasingly important, as athletes’ revenue starts decreasing. If an athlete did not have a budget in place before retirement, they will need to create one and try to stick with it, in order to be able to manage their finances effectively. The budget should include provisions for both investments and retirement accounts which are crucial in building the athlete’s financial future.
Athletes can turn to financial advisors who can help them make informed investment decisions and build a diversified portfolio based on their financial goals and risk tolerance. They can also help them utilize retirement accounts, such as 401(k)s, IRA’s or pension plans to save and invest for retirement.
Some athletes might decide to transition to a second career after sports to create a new revenue source. To do so, athletes can start exploring their interests way before retirement and identify interests and passions that might lead to potential career paths. If their chosen post-retirement career requires formal education, they can enroll in classes to gain the knowledge and skills required. At the same time, they should strive to build a network of professional relationships that might lead to future job opportunities.
The personal brand athletes build during their playing years can be leveraged even after retirement. In fact, in many cases, retired athletes find that their personal brand becomes even more valuable as they transition into new careers or ventures. By capitalizing on their name recognition, expertise, and credibility, they can build successful business ventures or attract sponsorships and endorsements long after their playing days are over.
Of course, to succeed in anything that they decide to do after retirement, athletes need to be healthy and emotionally prepared. Mental health issues such as depression and anxiety are not uncommon after retirement from sports and athletes should seek counselling or therapy to help them cope with the emotional challenges of retirement. Having a strong support system of friends, family, and mentors is critical for mental health.
Getting ready for retirement is crucial for a smooth transition from a sports career to a fulfilling post-athletic life. Proper planning and preparation can help athletes navigate the challenges and uncertainties that come with retirement, ensuring long-term financial stability, emotional well-being, and personal fulfillment.
The Money Smart Athlete® Blog is established and run by the Sports Financial Literacy Academy® (SFLA). Through its education programs, the SFLA has the vision to financially educate and empower athletes of all ages to become better people, not just better athletes. For more information on our courses, our SFLA Approved Trainer Program®, and how they can benefit you and your clients, please get in touch with us at [email protected].
