Olympian Retirement vs Mere Mortals Retirement

Olympics fever was high all over the world as we watch the best athletes compete on the world stage. Have you ever wondered about when Olympians normally retire, and how it compares to the retirement transition of us mere mortals in the rat race. Usain Bolt retired from Track and Field in 2017 at age 31. When you compare that to the regular 9-5 employee or Business Owner who retires at age 65, that’s 34 years early. Unlike regular employees who typically have a 40-50 year career span, athletes often retire in their 30s or 40s. For instance, the average career length for NFL players is just over three years, while NBA players average around 4.5 years. Even those who enjoy longer careers in sports like tennis or golf often find themselves contemplating retirement by their early 40s. This compressed earning period means that athletes have to acutely focus on their second act, since they will have lots of years to go after retirement.

Modern Retirement

The Olympics was held in Summer of 776 BC at Olympia in Southern Greece and in that age, life expectancy was around 35 years old. So if Usain was around at that time, he retirement would have been for 4 years. In 1889 Germany introduced the first Universal pension program to employees at that time the life expectancy was around 40 years old. Retirement time frame historically was non existent, because you worked until you died or a very short period. Fast forward to modern times and with life expectancy at around 80 for men and 83 for women, a typical employee may spend close to two decades in retirement. So like an athlete, the focus should also be on the second act as well as the financial considerations. ?

Reinventing for the Second Act

The end of an athletic career often brings about a sense of loss and uncertainty. However, it also presents an opportunity for reinvention. One of the most significant challenges for both athletes and regular employees is reinventing themselves after retirement. For athletes, this "second act" often involves leveraging their fame, skills, and network to pursue new ventures. Many athletes transition into careers in coaching, broadcasting, or entrepreneurship. The key to success in this phase is preparation—athletes who invest time in education, skill development, and networking during their playing years are better positioned to make a successful transition. Regular employees, too, face the challenge of reinventing themselves. Whether it's pursuing a passion project, starting a small business, or engaging in part-time work, the second act can be fulfilling but requires planning. Unlike athletes, regular employees may not have the same level of fame or wealth to leverage, but they do have the advantage of experience and a longer time horizon to prepare for this transition.

Reinventing for the Second Act

While the average employee has more time to accumulate wealth, there are still valuable lessons to be learned from the way Olympians and Athletes in general approach retirement:

• Maximize Peak Earning Years : take advantage by maximizing savings and debt repayment at this stage
• Reinventing the Career: Career shifts are becoming increasingly common along with virtual and remote work, so a gradual shift over time with intentionality is better than waiting until you last day to then think, “Now What?”
• Lifestyle Management: While working it helps to maintain a lifestyle and social circle outside work and beyond work friends. As social beings, this can be the tough realization and adjustment if hobbies, family, old friends where neglected while one was head down in the rat race.

?Conclusion

Retirement planning is a complex and highly individualized process, whether you’re a world-class athlete or a regular employee. For athletes, the urgency to prepare for life after sports is heightened by a shorter career span. However, the potential for a successful and fulfilling second act is immense, provided they reinvent themselves with intention and planning. Regular mortals (Employees and Business Owners) while having a longer timeline to earn income, can draw inspiration and lessons from the Olympian’s playbook. Whether on the field or in the office, the goal is the same: a secure and prosperous retirement. If that retirement dream for you involves a tropical destination, I invite you to attend our next webinar about “Retirement Elsewhere: Mexico” and share with family and friends.

Orlando Lopez,CFP,CIM,CIWM Book a Meeting Upcoming Events