The past few weeks have seen a rash of athlete retirement news, from Super Bowl hero Nick Foles hanging up his jersey to women’s soccer legend Alex Morgan retiring from the game after a stellar career. For athletes, retiring can be a tough transition. They spend their lives preparing for that moment, and then they must figure out how to live on minimum wages while also finding ways to stay healthy and maintain a sense of self-identity outside their sport.
The most important thing for athletes to know is that retirement is a process, not an endpoint. It’s rare for a professional athlete to suddenly retire one day, and most athletes gradually ease out of the game by playing less frequently, training fewer hours or taking breaks. That gradual shift helps them adjust to the new demands of their post-athletic careers, as well as the lack of structure in their lives.
Financially, retired athletes must make sure to pay off any debts and invest wisely. Athletes should start learning about investing and financial planning early in their careers, says Tom Sagissor, president of RBC Wealth Management – U.S and former NHL draft pick. He recommends that athletes consider term life insurance and permanent total disability insurance to protect their earnings.
Athletes’ parents, partners and coaches can also help them transition to retirement. They may find it challenging to lose their connection with the athlete, but they should try to keep in touch so that they can support them during this time of change.