It’s no secret that the National Football League offers some of the most generous pensions for its players, and it’s also no secret that understanding the exact mechanics of how NFL pensions are calculated can be downright overwhelming. I remember when I first started out in the league, I had no idea what the exact pension benefits were – I just knew that I wanted to make sure I took advantage of everything I could. So, I started asking around and doing some research.
One of the first things I found out was that the length of your NFL career plays the biggest role in determining your pension payout. Generally speaking, you have to have at least threeplaying seasons to qualify for a pension. The longer you play in the NFL, the higher your pension payout will be. I was also welcomed to hear that for players who were in the league before 1993 the minimum eligible pension is over $32,000 per year.
When it comes to the specifics of how your pension is paid, information is provided by the NFL Players’ Association. To start, the money comes from two different sources: investments of NFL-sponsored pension funds and either league contributions or a combination of contributions from the league and the players collectively.
As far as determining how much you will receive, the NFL formulas can be complicated. Players who qualify are subject to receive what’s called “vested benefits,” where they’re paid a percentage of their final contracted salary, usually between 50 and 75 percent. To put that into perspective, a player who retires after playing 15 seasons is entitled to a 75 percent pension. Additionally, players are also eligible for post-career medical and hospital care.
Furthermore, I also found out that retired players can apply through the NFL’s disability program. This program is designed to provide players with disabilities resulting from football-related injuries with tax-free supplemental income. You have to be deemed “disabled” under the program to be eligible and have to have at least five credited NFL seasons. After that, the disability program pays out between $3,000- $6,000 each month.
What I found particularly encouraging is that the NFL also has a vested interest in protecting the financial health of their former players. As a result, they offer educational and career counseling programs to help former NFL players transition into post-football careers. These programs give players an opportunity to gain college credit, career counseling, leadership training, financial guidance, and more.
I’m a big believer in the importance of financial security. As a former NFL player, I realize how crucial it can be to plan for the future. That’s why I’m thankful for all the support the NFL has to offer when it comes to financial planning for their retirees. Knowing that I’ll have a pension and disability benefits to help secure my future is one of the biggest comforts I have in life.