Soccer player who made over $2 million a year explains why retirement made him wish he "never played’

He said athletes squander millions at the height of their earning years without realizing the 25-year gap between giving up football and retiring completely. The average professional athlete retires before age 30 (2).

With careers compressed into a handful of years, athletes might age out before they reach financial maturity, or an injury could cut it short even sooner. Ferdinand believes early education is key, as the macho nature of sport often prevents players from discussing finances and sharing concerns.

Money can't buy financial literacy

Ferdinand's brother, Rio, who played for Manchester United, was among the victims of an alleged investment fraud (3) with reported losses exceeding £25 million (about $33 million). The advising firm, Kingsbridge Asset Management, was accused of targeting players and is no longer operational.

Anton Ferdinand advises professional players to learn about investing early and ask more questions. "The most important thing I've learnt is that if someone is offering you an investment make sure you educate yourself on that and know what the investment is. If you don't know the investment, ask questions. There are no silly questions."

Anton Ferdinand's agent did not immediately respond to Moneywise's request for comment.

Retirement game plan

According to CNBC (4), an estimated 60% of former NBA players go broke within five years of leaving the league. The 30 for 30: Broke (5) documentary explores the economic reality shock after years of living large, with many athletes filing for bankruptcy after retiring.

But retirement unpreparedness isn't only a pro athlete problem. The Schwartz Center for Economic Policy Analysis reported (6) only about 35% of people approaching retirement say they feel "on track." Boston College's National Retirement Risk Index (7) showed that 39% of working-age households risk a lower standard of living in retirement.

As the old adage goes, it's time in the market, not timing the market, that matters. Compound interest is one of the great wonders of the world. Just like the highest-paying athletes aren't always the most financially successful, bigger salaries don't automatically equal bigger savings. It has everything to do with the amount you can save and invest, not what comes in.

Focus on how much you can preserve, just as much as how much you can earn. Invest in financial education, so you know where every dollar is going and why. Take ownership of your retirement, even when working with professionals. Plan ahead for all seasons of life.

Article sources

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The Times (1),(3); RBC Wealth Management (2); CNBC (4); Netflix (5); Schwartz Center for Economic Policy Analysis (6); Boston College Center for Retirement Research (7)