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NZ cricket pension fund offers millions for retiring players |
05 Mar 2016 15:38 #295105
by chairman
A groundbreaking, multi-million dollar retirement fund is set to ease New Zealand cricketers through the often perilous transition from professional sport to the working world.
Cricket is leading the way with this, the first compulsory saving initiative in New Zealand professional sport. It is aimed at preventing players falling on crippling financial hardship when their careers come to an abrupt end.
The fund was established in 2010, as part of the collective agreement between the Players' Association and New Zealand Cricket, to ensure New Zealand's 20 contracted players planned for the future and learned smart ways to invest their money.
Domestic cricketers were included from last season.
Only now the pot has hit $4 million is the money, spread across 123 players, available. About $650,000 is contributed on the whole annually.
Funds range per individual but Black Caps captain Brendon McCullum is understood to have invested about $200,000 in the scheme which is run by Superlife, a New Zealand superannuation provider. Fellow senior Black Caps Ross Taylor, Kane Williamson and Tim Southee have contributed similar amounts.
The retirement fund comes following revelations from former Samoa, Counties Manukau and Highlanders midfielder George Leaupepe who claimed he was left on the scrapheap after retiring from professional sport. The late Jonah Lomu is another high-profile sportsman who ended up struggling financially.
Former Central Districts and Black Caps batsman Mathew Sinclair is the poster child in the need for future planning. Sinclair arrived on the international scene with a double century on test debut. He scored 36 first-class hundreds in total and finished with an average over 50. But, after a 20-year career, he struggled to find work after retiring in 2013 and eventually ended up on the dole, battling to support his two children.
"It's one of the best initiatives I've heard in a long time," Sinclair, who now works in real estate for Harcourts in the Hawke's Bay, said. "I can see major benefits in all aspects of getting this done. It's highly important to put that money aside rather than for something else that's not going to get them an asset.
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"Youngsters are realising they need to look at plan B and C in regards to their careers. We're seeing lots of examples of that at the moment and the more we can try and help these guys with that transition, the easier it will be.
"I had no progression – all I wanted to be was the best cricketer I could. A cricketing career is a short span. Something can happen just like that and you've got to have that back-up."
Players involved in this scheme can withdraw funds at two junctures; half when they pulls stumps on their professional careers – the other half when they reach retirement age of 65.
Access to savings is also granted for a first house, or in times of financial hardship.
Funds are allocated from the player payment pool, which receives around 25 per cent of NZC's revenue, compared to 36 per cent for New Zealand Rugby.
New Zealand Cricket's 20 contracted players each bank between $30,000 and $40,000 into the savings scheme annually. That's made up of a base investment of $20,000 per year, with the rest dependent on how many matches they play each season. Domestic players get a minimum of $2,500 per year.
Intentions are to bridge the gap between professional and post-playing life; minimise the pressure and adjustment period and develop a savings culture.
Each player manages their own investments with a financial adviser, giving them valuable insights into how best manage their money.
"We're delighted to get a superannuation scheme up and running. In all honesty it's been a glaring weakness of our contracting environment," New Zealand Cricket Players' Association boss Heath Mills said. "It's a good development because it means players will be saving from the day they start playing professional cricket.
"If you look around the world, pension schemes are key components of most professional sporting environments. It wouldn't surprise me to see more sports start to put these in place here in New Zealand."
- Sunday Star Times
Always tell someone how you feel because opportunities are lost in the blink of an eye but regret can last a lifetime.
cricketwindies.com/forum/
A groundbreaking, multi-million dollar retirement fund is set to ease New Zealand cricketers through the often perilous transition from professional sport to the working world.
Cricket is leading the way with this, the first compulsory saving initiative in New Zealand professional sport. It is aimed at preventing players falling on crippling financial hardship when their careers come to an abrupt end.
The fund was established in 2010, as part of the collective agreement between the Players' Association and New Zealand Cricket, to ensure New Zealand's 20 contracted players planned for the future and learned smart ways to invest their money.
Domestic cricketers were included from last season.
Only now the pot has hit $4 million is the money, spread across 123 players, available. About $650,000 is contributed on the whole annually.
Funds range per individual but Black Caps captain Brendon McCullum is understood to have invested about $200,000 in the scheme which is run by Superlife, a New Zealand superannuation provider. Fellow senior Black Caps Ross Taylor, Kane Williamson and Tim Southee have contributed similar amounts.
The retirement fund comes following revelations from former Samoa, Counties Manukau and Highlanders midfielder George Leaupepe who claimed he was left on the scrapheap after retiring from professional sport. The late Jonah Lomu is another high-profile sportsman who ended up struggling financially.
Former Central Districts and Black Caps batsman Mathew Sinclair is the poster child in the need for future planning. Sinclair arrived on the international scene with a double century on test debut. He scored 36 first-class hundreds in total and finished with an average over 50. But, after a 20-year career, he struggled to find work after retiring in 2013 and eventually ended up on the dole, battling to support his two children.
"It's one of the best initiatives I've heard in a long time," Sinclair, who now works in real estate for Harcourts in the Hawke's Bay, said. "I can see major benefits in all aspects of getting this done. It's highly important to put that money aside rather than for something else that's not going to get them an asset.
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"Youngsters are realising they need to look at plan B and C in regards to their careers. We're seeing lots of examples of that at the moment and the more we can try and help these guys with that transition, the easier it will be.
"I had no progression – all I wanted to be was the best cricketer I could. A cricketing career is a short span. Something can happen just like that and you've got to have that back-up."
Players involved in this scheme can withdraw funds at two junctures; half when they pulls stumps on their professional careers – the other half when they reach retirement age of 65.
Access to savings is also granted for a first house, or in times of financial hardship.
Funds are allocated from the player payment pool, which receives around 25 per cent of NZC's revenue, compared to 36 per cent for New Zealand Rugby.
New Zealand Cricket's 20 contracted players each bank between $30,000 and $40,000 into the savings scheme annually. That's made up of a base investment of $20,000 per year, with the rest dependent on how many matches they play each season. Domestic players get a minimum of $2,500 per year.
Intentions are to bridge the gap between professional and post-playing life; minimise the pressure and adjustment period and develop a savings culture.
Each player manages their own investments with a financial adviser, giving them valuable insights into how best manage their money.
"We're delighted to get a superannuation scheme up and running. In all honesty it's been a glaring weakness of our contracting environment," New Zealand Cricket Players' Association boss Heath Mills said. "It's a good development because it means players will be saving from the day they start playing professional cricket.
"If you look around the world, pension schemes are key components of most professional sporting environments. It wouldn't surprise me to see more sports start to put these in place here in New Zealand."
- Sunday Star Times
Always tell someone how you feel because opportunities are lost in the blink of an eye but regret can last a lifetime.
cricketwindies.com/forum/
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