For most athletes, retirement is a long process. It’s rare to see a professional athlete quit their sport cold turkey. Instead, they often retire in a systematic manner, such as competing less frequently or training with a lower intensity.
Athletes also face a significant change in their self-identity after retiring, as they are accustomed to seeing themselves as part of the sport circuit and its community. This transition is particularly difficult for elite athletes, who are typically immersed in highly defined cultural and social expectations. This can make it difficult for them to leave the sport and find a new identity outside of it, according to a study published in Qualitative Research in Sports, Exercise and Health.
One of the greatest left-handed pitchers in baseball history, Clayton Kershaw, announced his retirement Thursday, when the Los Angeles Dodgers’ season is over. The announcement comes on the heels of a stellar season, in which Kershaw posted a 2.89 ERA and 239 strikeouts.
Whether they’re an MLB or NBA superstar or an Olympic gold medalist, athletes should be financially literate early on, says Wally Chapman, divisional director at RBC Wealth Management-U.S. He recommends that players learn about saving and investing, which can help them build a stable base of income in their later years. In addition, he encourages athletes to consider permanent disability insurance and life insurance for peace of mind. He and other RBC professionals also suggest that athletes consider setting up a trust, which may provide tax benefits in the future.