How Much Is An NFL Pension?

How Much Is An NFL Pension? If you are a retired NFL player, you may be wondering how much your pension is worth.

Introduction

An NFL pension is a retirement plan that is provided by the National Football League for its players. The pension is a defined benefit plan, which means that it pays a fixed amount of money to retirees based on their years of service and final average salary. As of 2018, the maximum benefits that can be paid out under the plan are $12,000 per year for players who have played in the league for 20 or more years, and $9,000 per year for players with between 10 and 19 years of service.

How Much Does an NFL Pension Pay?

An NFL pension pays eligible players $1100 per month for every year they played in the league, up to a maximum of 20 years. If a player played for more than 20 years, they would receive an additional $275 per month for each year over 20.

What Factors Affect an NFL Pension?

In order to qualify for an NFL pension, a player must have accrued at least three years of service in the league. The amount of the pension is based on the number of credited seasons a player has earned. In 2014, the average NFL pension was $43,000 per year.

Players who have retired before 1988 only receive benefits if they played for five or more years. For every year played, these players receive $200 per month in benefits, up to a maximum of $1,000 per month. If a player played for 10 or more years, he receives an additional $75 per month for each year over nine, up to a maximum of $12,000 per year.

Players who retired after 1987 receive benefits regardless of the number of years they played. These players receive $250 per month for every credited season played, up to a maximum of $3,000 per month. Players who have accrued more than 10 credited seasons receive an additional $50 per month for each season over 10, up to a maximum of $10,000 per year.

How Does an NFL Pension Work?

Assuming you played in the NFL for three years or more, you are vested and eligible for a pension when you reach age 55. Your benefit is based on your years of credited service and the average of your best three years’ salary (not necessarily consecutive). If you played fewer than three seasons, your benefit is based on your actual NFL earnings. For more information on how pensions are calculated, visit the NFL Players Association website.

You can begin collecting your pension as early as age 45, but your benefits will be reduced by 6% for each year you start before reaching normal retirement age (55). For example, if you start receiving benefits at age 45, your benefits will be reduced by 24%. If you wait until age 65 to start collecting, your benefits will be increased by 32%.

If you are divorced from a spouse who was married to you for at least nine months during your credited service, he or she may also be eligible to receive a portion of your pension.

How to Maximize Your NFL Pension

NFL pensions are not as lucrative as they once were, but they can still provide a nice supplement to your retirement income. If you played in the NFL for at least three years, you are eligible for a pension. The amount of your pension is based on your years of service, your age when you start collecting and the average salary during your career.

To maximize your pension, you should try to play for as long as possible and start receiving benefits at the age of 65. If you retire before you turn 45, your benefits will be reduced by 20 percent. If you retire after you turn 45, your benefits will be reduced by 10 percent.

Your average salary is based on your highest-paid year in the NFL. If you had multiple years where you earned a high salary, only the highest one is used to calculate your average. For example, if you played 10 years and earned an average salary of $1 million per year, but your highest-paid year was $2 million, then your average salary would be $2 million for purposes of calculating your pension.

The following are the maximum amounts that can be earned under the NFL’s current pension plan:

If you played: You can receive:
3 years $780 per month
4 years $880 per month
5 years $1,040 per month 6 years $1,200 per month 7 years $1,320 per month 8 years $1,440 per month 9 years or more $1 560 per month

Conclusion

In conclusion, an NFL pension is a great retirement plan for any player who has played in the league for at least three years. After twenty-five years of vesting, players will receive $1,000 per month for every year they played in the NFL. If a player retires at age 45, they will receive $45,000 per year, and if they retire at age 65, they will receive $1,000 per month for every year they played in the NFL.