Advisers are needed to help the growing number of wealthy young professionals in physically demanding careers who are 'retiring' decades before their state pension age.
According to Matt Wotton, executive director, sports, media and entertainment at Coutts, rising numbers of sports stars in their 30s are seeking professional financial advice.
This was not just to help them avoid some of the high-profile tax traps of recent years, but also to create a financial plan that can see them through to state retirement age and beyond.
Wotton said some of these stars can range from an 18-year-old footballer with no financial knowledge, through to someone in their 30s and 40s seeking to change from being a competitor towards other roles, sometimes with a drop in the levels of income as a result.
He said: "As a sports star moves towards retirement their income levels typically fall away – so the plan is always to have built a sufficient enough nest egg, through cash, properties and investment portfolios to maintain their lifestyle.
"Naturally many still have much to offer the sport they loved, so take up roles as coaches, managers, pundits or even agents – each of these can not only bring in extra cash, but also help with the challenges that so often present themselves through the transition into non-competing retirement."
Wotton said not preparing for retirement, both financially and mentally, was a "frequent pitfall" so Coutts aimed to help them - and their families - prepare for the inevitable next step in their lives.
According to Wotton, the most important thing when advising young sports stars, is to say is that it’s never too early to have a plan in place, whatever their age.
He said: "We will literally sit down with an 18-year-old footballer and agree with them a plan to work towards.
"At that stage, retirement can seem like a lifetime away but it can come around sooner than they think, so it’s important to do sensible things with their money and not squander the wonderful opportunity they have."
He also said it was also important for trusted advisers to create robust portfolios and ensure that clients are not carried away by whatever investment trend is popular at the time, or to be so disengaged from their finances that they leave all their money sitting in cash.
Wotton explained: "Diversification is then key – it’s a classic cliché, but keep all those eggs out of that wobbly basket.
"Inflation can rapidly erode the value of money- just look at what’s happening at the moment with rates above 5 per cent - so staying in cash is the only guaranteed way to lose.
"Many like the tangibility of property, many others hold investment portfolios, but both have a part to play in overall wealth strategy."
