Team GB celebrated several triumphs at the 2024 Paris Olympics, including an unexpected win from 19-year-old Toby Roberts in the sport climbing. The relay swimmers also made history by becoming the first British team to defend their Olympic title in the event.
However, there was some more bittersweet news as Paris 2024 saw the retirement of two of the biggest stars in British sport. Diver Tom Daley and tennis player Andy Murray both competed for the final time in their careers at the games.
This news could be an important reminder that you need to consider what will happen when you retire from professional rugby.
Read on to learn why.
Tom Daley and Andy Murray both retired in their 30s
Tom Daley was 30 when he competed for the final time, and Andy Murray was 37 when he retired from playing tennis.
In comparison, the average retirement age in the UK, according to the Office for National Statistics (ONS) was 66 for men and women in 2021.
Additionally, in 2024/25, you cannot access your pensions until age 55 (rising to 57 from 2028) and your State Pension until age 66. There are plans for a phased increase in the State Pension Age to 67 and eventually 68 for those born after 5 April 1960.
Consequently, Tom Daley may have to wait at least 27 years before accessing his pension savings, if he has any, and Andy Murray may have to wait 20 years. They will both wait longer before they can claim any State Pension payments.
If you retire from rugby in your 20s or 30s, you may find yourself in a similar situation. While you will likely move into a second career, you could be reliant on savings from other sources, such as an ISA, to partially or even fully fund your lifestyle.
That is why you may want to start saving and investing now, while you are still playing. This could mean you have more wealth to fund your lifestyle after your retirement from sport.
Conversely, if you do not have adequate savings, you may need to alter your lifestyle until you can begin a second career and generate more income.
We can give you guidance about the most effective ways to save and invest for your future during your playing career.
Andy Murray says coaching is a possibility but he will not work in the media
It has only been a few weeks since the end of the Olympics, but Tom Daley and Andy Murray are already thinking about their next steps.
Both have said that they want to enjoy some much-needed downtime with their families. Beyond this, the BBC reports that Andy Murray said coaching might be “something I want to do in the future”.
However, he ruled out a career in the media, despite this being a common choice for many retired sports stars.
Tom Daley, on the other hand, is a popular social media personality and is heavily involved in charity work. As such, he might be more likely to have a career in the public eye.
The differing paths of the two retired sports personalities demonstrate that everybody is unique, and it is important to consider what kind of second career may suit you.
For example, you might decide to coach or become a commentator. Alternatively, you could do something unrelated to rugby or start your own business instead.
You may also need to consider whether your second career will generate enough income to maintain your current lifestyle, or if you will have to make sacrifices.
If you consider your future plans now, you may be able to make inroads into a new career. You could also give yourself more time to prepare financially. Ultimately, this means the transition could be smoother when you retire from professional rugby.
A financial planner could help you prepare for the end of your playing career
Navigating your retirement from playing and the beginning of a new career can be challenging. Fortunately, working with a financial planner could make the process easier for you in several ways.
For example, while you are playing, we can discuss different ways to build wealth so you can fund your lifestyle after your first retirement when your earnings might fall for a period. You could explore income-generating investments too, and we can give you guidance on this.
We may also help you manage your cash flow and create a new budget so you are prepared for a change to your income. This could mean that you draw more sustainably from your savings and can maintain your lifestyle while you transition to your second career.
Additionally, we can help you look ahead to your second retirement and begin building wealth in your pensions and other savings.
Get in touch
If you are yet to plan for the end of your playing career, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
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.
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.
