In addition to this, earnings trajectories can take a hit following pregnancy or if they decide to have a shorter career to start a family.
Some sportswomen are not making enough to fund their lifestyle and have other jobs to compensate. This can also impact their ability to progress and consequently their projected earnings.
Time investing in financial markets and making the best use of your available tax allowances is pivotal to maximising the income over a career.
Individuals need to be aware of what options are available in their toolkit (including pensions and Isas) and have the appropriate information at their disposal to make informed decisions about their finances.
3. Building rapport and trust for a long-lasting relationship
To commit to a financial plan over the course of a sportspersons career, it is important to build a strong relationship with a financial adviser.
Building rapport sometimes comes down to someone you can identify with or someone that earns your trust.
It is therefore very important for sportswomen to have options when choosing the right financial adviser for them.
To that end, the industry must do more to increase diversity among the pool of financial advisers.
If, for example, a sportswoman wanted to be advised by a female financial adviser, their options are more limited than they should be.
4. The importance of a well-rounded ecosystem
An international career can also add to the complexity of financial planning due to the challenges of earnings accumulated in multiple jurisdictions.
Taxation planning, legal structuring, and understanding how best to minimise negative impacts of foreign exchange rates can be key in securing positive outcomes.
Having a team of professional advisers for holistic and joined up planning is very important.
As a lifestyle, a career in sports can be mentally and emotionally demanding, not just physically taxing.
Being financially fit for the long term is just as important as being physically fit for the next competition. Having a solid plan in place will best position sportswomen to realise their wealth goals and secure their financial futures.
Saisha Penny is private client manager at Brooks Macdonald
