Being a professional athlete is a glamorous, however short-lived profession. According to RBC research, athletes sometimes retire earlier than the age of 30. For the National Football League (NFL), the typical retirement age is simply 27.6.
Fortunately, the NFL has “great benefits” for gamers, in accordance with former quarterback Michael Vick. After enjoying within the league for 13 seasons, the once-bright-star-turned-controversial determine retired in 2017 on the age of 36. Even after he missed two years of enjoying time whereas serving a jail sentence for his involvement in a canine combating ring, he says he receives a examine value over six-figures every year.
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“I think the NFL does a great job of making sure we’re set up properly when we retire,” Vick, now 44, advised 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 advantages
Vick didn’t specify the main points of his annual cost, nonetheless, based mostly on the NFL’s summary of benefits for vested former gamers, it might come from an annuity program that eligible gamers can faucet into as early as 5 years after their last season. Players even have entry to a 401(k) plan and capital accumulation plan. There’s additionally a pension plan obtainable from which gamers aged 55 and up can obtain month-to-month funds based mostly on what number of credited seasons they've beneath their belt.
In addition, Vick says he’s eligible for incapacity advantages because of the accidents he sustained over the course of his profession. Former gamers can obtain prolonged medical insurance protection and participate in a well being reimbursement account plan.
“The league provides us with opportunities to make sure financial longevity is in place for us, if you want it,” he mentioned. Unfortunately, he witnessed some of his friends miss out on similar benefits and safety. “I’ve seen a lot of guys who didn’t want it, who didn’t pay attention.”
Vick’s expertise highlights the importance of financial literacy and consciousness.
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Benefits consciousness
At the top of 2023, roughly 56.6% of American employees had entry to a 401(okay) account, in accordance with rollover service Capitalize. Health advantages are equally widespread. In 2023, 53% of all companies supplied some well being advantages, in accordance with the Kaiser Family Foundation. This determine jumped to 94% amongst these with greater than 50 workers.
Other advantages have been much less commonplace. Only 23% of union and 27% of nonunion employees had entry to paid household go away, in accordance with the Bureau of Labor Statistics.
Workers may additionally be lacking out on some advantages as a result of they don’t understand how they work. According to the American Society of Pension Professionals & Actuaries, citing 2023 analysis by MetLife, 45% of workers reported they don't absolutely perceive parts of their company advantages packages.
Taking the time to grasp all the advantages which are obtainable to you, or reaching out to knowledgeable financial planner to hunt help, may increase your monetary safety throughout and after your profession.
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This article gives info solely and shouldn't be construed as recommendation. It is offered with out guarantee of any sort.
