Sep 17, 2024
Being a professional athlete is a glamorous, but short-lived career. According to RBC research, athletes typically retire before the age of 30. For the National Football League (NFL), the average retirement age is just 27.6.
Fortunately, the NFL has “great benefits” for players, according to former quarterback Michael Vick. After playing in the league for 13 seasons, the once-bright-star-turned-controversial figure retired in 2017 at the age of 36. Even after he missed two years of playing time while serving a prison sentence for his involvement in a dog fighting ring, he says he receives a check worth over six-figures each year.
Advertisement
“I think the NFL does a great job of making sure we’re set up properly when we retire,” Vick, now 44, told Aristotle Varner Jr. on an episode of “Kickin It With the OGs” on YouTube in May. “They put us in plans where if you play long enough and invest long enough while you’re in the league, then you’ll have decent payouts when you get older.”
Player benefits
Vick didn’t specify the details of his annual payment, however, based on the NFL’s summary of benefits for vested former players, it may come from an annuity program that eligible players can tap into as early as five years after their final season. Players also have access to a 401(k) plan and capital accumulation plan. There’s also a pension plan available from which players aged 55 and up can receive monthly payments based on how many credited seasons they have under their belt.
In addition, Vick says he’s eligible for disability benefits due to the injuries he sustained over the course of his career. Former players can receive extended health insurance coverage and take part in a health reimbursement account plan.
“The league provides us with opportunities to make sure financial longevity is in place for us, if you want it,” he said. Unfortunately, he witnessed some of his peers miss out on similar benefits and security. “I’ve seen a lot of guys who didn’t want it, who didn’t pay attention.”
Vick’s experience highlights the importance of financial literacy and awareness, even among high earners.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Benefits awareness
At the end of 2023, roughly 56.6% of American workers had access to a 401(k) account, according to rollover service Capitalize. Health benefits are similarly widespread. In 2023, 53% of all firms offered some health benefits, according to the Kaiser Family Foundation. This figure jumped to 94% among those with more than 50 employees.
Other benefits were less commonplace. Only 23% of union and 27% of nonunion workers had access to paid family leave, according to the Bureau of Labor Statistics.
Workers might also be missing out on some benefits because they don’t know how they work. According to the American Society of Pension Professionals & Actuaries, citing 2023 research by MetLife, 45% of employees reported they do not fully understand elements of their corporate benefits packages.
Taking the time to understand all the benefits that are available to you, or reaching out to a professional financial planner to seek assistance, could boost your financial security during and after your career.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
