During your playing career, you will likely focus on the next big milestone, whether that is signing for a new team or winning an important game. However, you will eventually retire from rugby, and it is important to consider what you will do afterwards.
Your income could fall when you hang up your boots, and you might need to prepare for this change in your circumstances. Beyond this, you may want to look ahead to your goals in later life and how you will fund your lifestyle.
If you are yet to make plans for life after rugby, these five key questions will help you get your finances in order.
1. Do you have savings and investments for the future?
While you are playing rugby and potentially earning a high income, you may not be concerned about how you will fund your lifestyle. However, after you finish playing and your income changes, you might need to draw from other sources, such as savings and investments, to cover your general living expenses.
You may also have certain financial aims you want to achieve, such as purchasing a second home or starting a business.
That is why it could be useful to review the savings and investments you currently hold and consider whether you have enough to achieve everything you want to after you stop playing.
For instance, you might hold wealth in a:
- Cash ISA
- Stocks and Shares ISA
- General Investment Account (GIA)
You may also have investment properties that you could sell or use to generate rental income.
We can help you review your savings and investments and, crucially, if you feel that you have a shortfall, support you in building more wealth during your playing career.
After you retire from rugby, we can continue managing your investments and advise you on the most suitable ways to draw from your savings and fund your lifestyle.
2. Do you have adequate protection in place for your family?
Protection is crucial for supporting yourself and your family during difficult times, both while you are still playing rugby and after you retire.
For instance, if you are injured and cannot play for a period, income protection could provide a regular payment to help you cover your general living expenses and contribute to savings.
Additionally, a payout from a life insurance policy may provide valuable financial stability for your loved ones if you pass away unexpectedly.
If you do not already have protection in place, you might want to take this vital step.
Equally, as you transition to a new stage of life after your rugby career ends, you may need to review your protection needs because your lifestyle and financial position will likely change.
Having a financial safety net could be especially important if your income falls for a period after you stop playing and before you have established a second career.
Ensuring you have the right protection in place means that you and your family can maintain your lifestyle and continue building wealth for the future, even when life presents challenges.
3. How will you generate an income after rugby?
The average rugby player likely retires between 35 and 40. This means there is a second phase of life that could last 50 years or more, and you may need to consider how you will generate an income during this time.
You might decide that you want to remain in the sport, even if you are no longer a player. There are many options for coaching or working in broadcasting as a commentator, for example. Alternatively, you may decide to do something else entirely, such as starting your own business.
Additionally, you could generate some or all your income from dividend-paying investments, if your portfolio is structured in a suitable way.
Whatever you decide, there will likely be financial implications. If you want to start your own business, you will need capital. You may need to increase the size of your investment portfolio if you plan to generate an income from dividends.
It is crucial that you begin thinking about your future after rugby now, so you can take the necessary steps to achieve a smooth transition to your second career and build new income streams.
Ultimately, this means you can maintain your standard of living and continue building wealth for the future.
4. What do you want your second retirement to look like?
If you are still playing and are yet to navigate your first retirement, you may not be thinking ahead to your second retirement. Yet, the earlier you start planning, the easier it will be to eventually realise your ideal lifestyle.
As such, you may want to consider what you want your second retirement to look like. You might want to travel extensively, for example, or you may prefer to spend time at home with your family.
It could also be useful to calculate what your general living costs might be. You can achieve this by creating a budget with expenses including:
- Mortgage or rent payments
- Utility bills
- Travel costs (including the cost of owning a car)
- Eating out and socialising
- Financially supporting family members.
While your plans may change later, this budget will give you a general idea of how much you are likely to spend each year after your second retirement.
We can also use cashflow forecasting to consider how inflation might affect your spending in the future. All this allows you to determine how much you may need to save to fund your desired retirement.
5. What level of retirement savings do you have?
Once you have a clear picture of what you want your second retirement to look like, it may be useful to review how much wealth you currently have in your pensions and other savings.
Again, we can use cashflow forecasts to determine how much you may need to contribute to your pensions each month to comfortably fund your second retirement.
We may discover that you are on track to reach your savings goal. On the other hand, you might have a shortfall in your savings. If so, we can explore ways to increase your contributions and ensure you do not have to make sacrifices to your standard of living during your second retirement.
Get in touch
If you need support preparing for your life after rugby, please do get in touch with DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate cashflow planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.