The last few weeks have been filled with athlete retirement news, from Super Bowl star Nick Foles hanging up his cleats to two-time Olympic gold medalist Alex Morgan announcing her last Women’s World Cup appearance. For many athletes, the decision to hang up their cleats is not an easy one.
Athletes typically retire much earlier than the average person, often coinciding with crucial phases of career development and family planning. It can be a big adjustment going from training around the clock to surviving on minimum wages with very little support, and some athletes struggle in their early post-athletic years.
Those who do make the transition can face a number of challenges, ranging from adjusting to a new lifestyle and finding ways to define their identity outside of sport to dealing with injury-related financial pressures. A study by Anglia Ruskin University found that the vast majority of female athletes experienced difficulties in identifying themselves as anything other than an elite athlete.
Athletes who make the decision to hang up their cleats might find themselves in a unique position when it comes to retirement finances, as most of their assets are held in trust and not directly under their control. RBC professionals recommend that athletes become financially literate and make the right investments to help fund their post-athletic lives. Those who are married should consider a prenuptial agreement to protect their assets, and those with children might want to establish a trust for tax planning purposes.