For many athletes, retiring from their sport can be a challenge. Athletes can struggle to find a new identity outside of their sport, and can even end up living on food stamps or going into debt in their early post-athletic careers. This is a significant problem that can be overcome with greater support and awareness from sports organisations, who can help their athletes plan for the future.
Athletes who are preparing for retirement need to think about more than their career, and also consider their family. A recent study by Dr Cavallerio interviewed female gymnasts who had retired from elite level competition and found that the experience of retirement was not just emotionally difficult for the athlete, but also the parents, partners and coaches.
Alex Morgan, one of the most successful women’s soccer players of her generation, recently announced her retirement from the game. In a video posted to social media, Morgan explained that it had been a difficult decision, but that it was time to move on to the next chapter in her life.
Financial advisers recommend that athletes consider buying term life insurance and permanent total disability insurance to protect their income, and set up a trust if they have more than $1 million in assets to avoid potential tax penalties. They should also make sure to pay off all debts before retiring, and invest in income-producing assets that can provide a steady stream of cash in retirement.