Andrew Luck and Retirement

Are you a fan of an NFL team excitedly awaiting the beginning of the new season? Chances are excellent that if you have a favorite team you have been waiting in anticipation to watch “your guys” play since the end of last season. Yet now, due in large part to the retirement of Andrew Luck, there are fans in Indianapolis who are less excited than they were before this shocking news.

The NFL season is full of shocking events throughout the season. Most often this involves teams outperforming or under performing expectations, perhaps a free agent signing that even Adam Schefter didn’t see coming. Most recently, the entire NFL community was shocked by the unexpected and out-of-the-blue nature of Andrew Luck’s retirement. Not a single analyst or insider anticipated what occurred at the fateful press conference. 

People retire every single day. We are rarely surprised by this natural step into the next stage of life, most often joyfully celebrating the individual who has decided to clock out for the last time after their years of hard work and dedication. At SignalPoint, advisors wrote articles (here and here) providing guidance to those who are entering this transitional time.

We prepare for years, and when the much anticipated day finally arrives people breathe a sigh of relief. Most people believe that retirement will be one of the most enjoyable times in life, anticipating the additional time spent with friends and family as well as the additional time to do things you enjoy. 

Yet Andrew Luck is not your typical retiree, even in the NFL. Despite this, Luck had to make some of the same calculations as other individuals who are considering early retirement or preparing ahead of reaching retirement age. Namely asking himself the following questions to determine if retiring was appropriate.

Have I reached critical mass?

Over seven NFL seasons, Andrew Luck has earned $97.1 million in total salary. This is impressive for an NFL player, yet this number seems especially large for normal folks. Undoubtedly, this level of income over the last several years will continue to be more than enough to supply Andrew Luck and his family with a stable, satisfying life in the years to come.

When you reach an age at which you’re considering retiring, you too should determine if your retirement fund has reached critical mass. If you take your annual expense total and then multiply this number by 20, this will give you a general estimate of what it will take to retire. Sometimes this process can be complicated, so it may be wise to reach out to a financial advisor for further guidance as you consider retirement. This article also (12) lays out several other important aspects as you ask the question, “How much do I need to retire?” specifically for those of us who would like to retire sooner rather than later.

How much am I giving up in future earnings?

By retiring at this point in time, Luck will forego earning the rest of his current contract, valued at $58.1 million. That is quite a chunk of change! This does not factor in the amount of money that Luck would have earned had he signed another contract after the current (now irrelevant) contract expired. The Colts would have rolled out the Brink’s truck for Luck, and other teams undoubtedly would have lined up to try to sign him to a lucrative deal as well. Colts’ owner Jim Irsay says that Luck will give up nearly $450 million in the potential earnings of future contracts. Although this proclamation is affected by the emotions of the moment, many believe that this projection is not too far off base.

Although it might not be a half billion dollar decision when you consider your retirement options, you should still consider what you may be giving up in potential earnings if you retire.

What will I do once I am retired?

In a previous conversation with Luck, John Feinstein reports that Luck said he would enjoy being a high school history teacher. No longer facing the demanding schedule of an NFL quarterback, a wide variety of opportunities will open up for the famous retiree. He may soak up the free time, take extended vacations abroad, or find a place to volunteer in the community. Luck likely has a plan to occupy himself in retirement, and you should too.

What activities will you be involved in? What do you want your social life to look like? These and many other questions will come into play as your consider what to do with the additional time you will gain in retirement.

Relaxation and free time should be key points of retirement yet not the focal points. If you are already retired, stay up to date and stay plugged into your community. Make an effort to stay in touch with what is going on around you and with the people in your life.

If you haven’t retired yet, curiously search now for the ways in which you would like to stay involved once you finally do retire. 

Will retiring right now increase my overall level of happiness in life?

During his time in the NFL, Andrew Luck suffered a slew of serious injuries and has stated that the injuries as well as the ensuing recovery process had taken away the enjoyment of the game. 

It is hard to enjoy life when you no longer enjoy your work. In fact, doing work that isn’t fulfilling can be emotionally and physically draining. It is healthier to avoid doing work you don’t enjoy, and this is the choice that Luck made for himself. This isn’t to say you should quit your job and head to the beach at the first sign of difficulty. Eventually it becomes clear that work is no longer as satisfying or rewarding as it used to be. At this point, carefully consider if retiring is the right choice then take action if you determine that retirement is the best thing for you at this stage of the game.

If you love your work and feel fulfilled going into the office every day, keep on keeping on for as long as it feels this way! Our work is such an important element of life, providing a great sense of fulfillment and accomplishment. Don’t decide to retire simply because “it’s time.” 

Choose to retire because it will make you happier and healthier.

All That to Say

Andrew Luck retiring at age 29 raises some questions about retirement that the rest of us should consider as well. That fateful day is always closer than it seems, so it is important to contemplate what retirement will look like even if you are 50 or more years out like myself.