According to Adam Fayed, Imagine you are a young man who is bought up in poverty or with little money – which is the norm in the UK and many countries for footballers.
Then at 18, 20 or 22, you start to earn millions if you are a top footballer.
Imagine all the hangers on. All the people that want to take advantage of a young man, with little financial education in most cases, with a lot of money.
It takes a very mature individual to realise “hey I will only earn like this until age 35 or so, so I shouldn’t get used to this kind of income”.
What often happens is people spend more as they earn more, and then the money decrease after retirement at 35 or so.
They are used to earning more, so go broke in about 40% of cases.
There is another reason as well. Only the top players earn millions.
Those in the second tier divisions, often earn much less. If you are “only” earning $300,000-$700,000 a year, you can’t retire at 35, unless:
- You were very frugal in your playing days
- You had a very good investment habits
- You have planned out a relatively cheap retirement destination to make sure your money will last for 50+ years with the passive income from investing
I have interviewed several ex footballers who weren’t famous, but earned good money.
Most still need to work as they didn’t earn enough in their playing days to retire in their 30s.
So they need to continue to work as they are broke or close too broke.