Alex Morgan, a two-time Olympic champion and women’s soccer pioneer, announced her retirement Thursday in a tearful video. “I knew in my heart that this would be my last season and it wasn’t easy,” Morgan said. She continued, adding that she was proud to have played a role in pushing women’s sports forward for young girls.
Athletes often retire at younger ages than the general population and struggle to adjust to life without their former career. Some even experience depression and substance abuse, according to research. The authors of the study, from Anglia Ruskin University and St Mary’s University, found that top athletes can become entangled in their previous identities, with their identity following them into retirement. The findings were published in the Qualitative Research in Sport, Exercise and Health journal.
Professional athletes are also often financially savvy, with many choosing to invest in property and business ventures while they’re still active. However, those risks can increase the chances of an unexpected financial blow, such as a major injury that cuts their contract short or prevents them from competing at all. RBC financial advisers recommend that athletes establish trusts to manage their wealth and protect assets from the unforeseen, whether it’s an injury or death.
Athletes should be financially literate to avoid costly mistakes, says RBC’s Tom Sagisor. They should seek professional advice before making any investments, and understand the tax implications of retirement and estate planning. This article is for general information purposes only and is not intended to serve as a substitute for the advice of your attorney or tax professional.