As the Red Roses prepare for tomorrow’s semi-final match against France, women sports professionals are commanding higher earnings and gaining greater visibility, but most still face the reality of needing to work after their sporting careers end. This is why they must financially prepare for both their exit from sport and retirement from a second career.
Adam Osper, Managing Partner at UK wealth manager Evelyn Partners, who specialises in advising sports professionals, including some of the UK’s elite female rugby, football, cricket and boxing stars, comments:
“As women’s sport gains in prominence, so does the earning potential of its stars driven by increased media coverage, rising ticket sales and expanding TV rights. From the Red Roses preparing for their semi-final against France at Ashton Gate in Bristol tomorrow in their bid to secure the coveted Women’s Rugby World Cup trophy to the Lionesses celebrating back-to-back Euros wins, female sports professionals are gaining greater exposure. That visibility is translating into growing off-field income from sponsorships and endorsements, sometimes even surpassing what they earn from tournaments.
“For elite female athletes, this means they are increasingly able to secure long-term financial stability by the end of their sporting career – mirroring the journey their male counterparts go on. But that is far from the norm.
“For many women sports stars, a second career will be a necessity, and financial planning must reflect that reality. This means professional players and athletes must compress a lifetime of financial planning into a short career window that may only span 10 years – then repeat the process for their second career. Unlike many of their elite male counterparts, female sports stars are more aware that they’ll likely need to work again after retiring from sport – though that outcome may change in the future as demand for women’s sport continues to grow.
“Whatever a sports professional earns during their career, they must remember that this phase of their working life is invariably short. As one football agent once told me, ‘you get 200 payslips in your career, so you must make them count’. While earnings are on the rise, for most professional sports women, especially outside elite football and rugby, those payslips represent the first stage of their career, not the last, so they need to make it stretch as far as possible but also have a plan for their life after they exit sport.”
Here, Osper outlines how female sports professionals should manage their finances to help them secure their future, not only for their exit from sport but also for their transition to the next chapter of their working lives:
Set a savings target for your first retirement at the end of your sporting career
Professional sports women should begin planning for their life after sport as early into their career as possible. While an athlete at the start of their journey may only be earning a modest income, earnings can grow rapidly – not just through success on the pitch but also through the growing commercialisation of women’s sport and the ability to attract sponsorship and endorsement deals. Women’s football earnings have increased sharply over the past few years, for example, driven by the England team’s success at the Euros and growing demand for match tickets and broadcasting rights.
Starting early and ensuring a player has a firm grasp of their finances gives them a crucial head start. It also makes them more adaptable if their earnings suddenly escalate. At the beginning of a career, understanding the basics of their personal finances, such as how much money is coming in – on and off the field – and how much is going out, is essential. From there, setting a savings target, based on their current income and end-of-career expectations allows them to build wealth that supports their ambitions beyond sport.
Get a plan in place to build that end-of-career pot
With two retirements to consider, athletes must balance long-term goals such as retirement in their 60s with shorter-term priorities including that sporting career savings pot that can act as a buffer between a life on the field and off it. To construct a plan for the end of a sports career, a financial planner can help, evaluating a player’s age, current income from all sources and when they expect to retire. They will then put together a plan that strives to build a certain amount of wealth by that potential career end date.
Remember, earning potential can shift quite dramatically, upwards and downwards, so the plan must be adaptable. Getting used to a spike in earnings is risky, as a player that has a very high cost of living could then find themselves burning through cash when their earnings dwindle again so balance is key.
Advisers can also offer guidance on career-ending insurance. Sports careers are short, and they can be even shorter if a player gets injured. Insurance that pays a lump sum on the diagnosis of an injury that ends their playing career prematurely can be worth considering. While the premiums on these policies can be expensive, it is imperative that players consider signing up, especially younger players, as they have their whole career ahead of them. As players age, build up wealth and pay down their mortgage, the need for insurance lessens.
Saving and investing during peak earning years is crucial
Female sports star earnings are improving but they continue to lag those of male athletes. What we are seeing in women’s sport is off-field income from sponsorship and endorsement deals becoming more important and, in some cases, significantly surpassing on-field income.
While this is not applicable to everyone, major tournaments such as the Women’s Rugby World Cup can trigger a sharp rise in income, an opportunity that should be seized rather than squandered. When a big pay out comes, it can be tempting to celebrate with a new car or luxury holiday, but a sports professional must strike a balance between enjoying success and securing their financial future.
Prioritising saving and investing during peak earning years can help build a substantial cushion for life after sport. Being financially nimble is key. As sponsorship and endorsement opportunities evolve, income can fluctuate dramatically. Without a flexible plan, a sudden rise in earnings can be mismanaged leading to missed opportunities to save and invest wisely.
Sports professionals should also steer clear of unregulated get rich schemes – something that has caught out elite male stars in the past. If an investment sounds too good to be true, it probably is. This is where a trusted, regulated financial adviser can make a difference, helping a client balance their current lifestyle with long-term goals – ensuring they enjoy their money and invest it wisely today while keeping a firm eye on the future.
Understanding how investing works can help to secure better long-term returns than cash
Understanding how investing works is vital if a sports professional wants their savings to grow ahead of inflation. While cash savings may seem safe, stable and easily accessible, they are vulnerable to erosion from both inflation and tax, with the real value of that money shrinking over time.
Younger athletes are increasingly aware of the impact inflation can have on cash savings, especially in light of the cost-of-living crisis. This is helping to drive interest in investing as a way to protect and grow their wealth.
Investing in financial markets offers the potential for higher long-term returns. Markets can be volatile, with peaks and troughs along the way, but money left invested over a long enough time horizon has potential to yield much better returns than cash.
An investment time horizon of at least five years is recommended as it constructing a well-diversified portfolio – not only across asset classes, such as equities, bonds, cash, funds, commodities and property but also across different sectors and geographies.
Taking on the right level of risk for the timescale you plan to invest for is also imperative as is the tax efficiency of a portfolio. With income tax thresholds frozen until at least 2028, more earners, particularly individuals with high incomes, are at risk of paying tax on their savings. That’s why it’s vital to move savings into the safe confines of a tax wrapper, such as a Stocks & Shares ISA, where gains and income are sheltered from tax.
Only a few will make it big – so lay the foundations for a second career now
While the profile of women’s sport is on the rise, the reality is that only a small number will earn enough during their sporting careers to retire comfortably without working again. There are exceptions, of course. In elite women’s football or individual sports like tennis, some athletes – particularly those with international success and strong commercial appeal – may be able to secure their long-term financial future. The Lionesses’ recent success, for example, has opened doors for a handful of players to achieve financial security on par with their male counterparts. But these cases remain rare.
Sports professionals don’t necessarily need to build enough wealth that they never need to work again, but they do need to accumulate a financial cushion and develop skills that supports a smooth transition to that next chapter. This should ideally be enough to ensure they don’t need to find a job on day one, but have the funds needed to retrain, pursue a degree or set up a business. Education, training and networking during their sporting career can also help prepare for the transition, ensuring they’re not only financially secure but also professionally ready for what’s next.
Don’t funnel too much into a pension – you can’t access that money until you turn 57
While pensions are a powerful tool for long-term retirement planning, sports professionals should be cautious about locking away too much too early. Most sports careers end in an individual’s mid-30s, but pension access is restricted until 57 for today’s crop of stars (rising from 55 in 2028). Overcommitting to a pension now could leave athletes with a shortfall during the critical transition period after their sporting career ends.
Workplace pension schemes, offered by some clubs, can be valuable, as employers may match higher contributions, and while tax relief on contributions is attractive, players must balance long-term retirement needs with the needs of their much-earlier retirement from sport.
Top-level professionals have an additional complexity due to the tapered annual allowance. If adjusted income exceeds £260,000, the annual pension contribution limit reduced by £1 for every £2 over the threshold, down to a minimum of £10,000. Those earning above £360,000 can only contribute £10,000 annually, making financial planning even more important.
Find the right balance between building wealth and paying down a mortgage
With only short career spans, female sports professional may feel pressure to build wealth quickly. Some sign up for short-term mortgages, such as five, 10 or up to 15 years, to secure their dream home and ensure they end their career with little or no mortgage debt. This is partly because lenders typically only offer short-term mortgages for professionals in sport because of the limited timespan of their careers,
This approach can be appealing but it risks leaving them cash poor at the end of their sporting career. They might have the home of their dreams, but they don’t have the capital to sustain the level of lifestyle they want to live in that home.
We typically advise clients to stretch mortgage terms where possible, largely because female athletes are likely to work again and a longer-term mortgage ensures they exit sport with both a manageable debt and a cushion to support the next stage of their life.
Don’t neglect your primary career – on-pitch performance comes first
While building a personal brand and securing off-field income is increasingly important for female sports professionals, this should never come at the expense of their primary career on the pitch.
Your sport is your bread and butter and while lucrative opportunities may come online, training, performance and commitment to the game remain the priority. While athletes should take advantage of the visibility that comes with major tournaments and rising media interest, a strong brand is built on consistent performance, not distraction.
