The Hartford and NCAA® present ‘Playbook for Life’ to coach student-athletes for financial success beyond the playing field

HARTFORD, Conn. – Despite high debt, college student-athletes are bullish on their financial future.  However, while more than half have begun planning for life after college, more than one-third lack the confidence to properly manage their finances. Across the board, their expectations about starting salaries and the amount of savings needed for retirement do not match reality, according to a new survey by The Hartford Financial Services Group, Inc. (NYSE: HIG).

Expectations and Realities:  A Rude Awakening for Graduates

The Hartford survey reveals that the average student-athlete plans to graduate with approximately $14,200 in student loans and credit card debt, and expects to land a job paying at least $64,500. Student-athletes in the North Atlantic Region anticipate the most debt, about $16,000, while those in the South Central states expect the least -- about $13,000. As for starting salaries, student-athletes in the West expect to earn the most when they graduate, $68,750, compared to the lowest expectations of $62,000 for those in the North Central states.

The actual average starting income for a college graduate with a liberal arts or general studies degree in 2005 is approximately $32,000, according to a salary survey by the National Association of Colleges and Employers.  Graduates with a degree in marketing will likely earn about $37,000, those with a degree in business, about $40,000, and those with an accounting degree, about $43,000. Even the highest-paying entry-level jobs in chemical engineering and computer sciences pay $10,000 to $15,000 lower than student-athlete expectations for starting salaries.

In terms of retirement, 71 percent of the student-athletes surveyed believe they will need less than $1 million to live comfortably when they stop working. Yet financial experts predict that when today’s college student reaches age 65, the amount needed to retire could be much higher due to inflation, escalating health care costs, depleted social security and increased life expectancies. 

Help for Students: Developing a Game Plan

Student-athletes nationwide now have the opportunity to develop a game plan for their financial future with the help of The Hartford’s Playbook for Life.  A national education program designed to help student-athletes gain a solid understanding of personal finance, Playbook for Life was created by The Hartford, working closely with the National Collegiate Athletic Association (NCAA).  Included in the program are visits to college campuses by members of “Team Hartford” – a select group of former student-athletes who have succeeded in both sports and non-athletic careers, and are visiting college campuses to share their personal stories.  A 25-page guidebook and Web site (www.playbook.thehartford.com) are also available to the student-athlete and non-athlete alike.

 “It’s never too early to draw up a game plan for your financial future,” said Team Hartford Captain Allen Pinkett, former University of Notre Dame All-American running back who played for the NFL’s Houston Oilers and New Orleans Saints before joining The Hartford. “I wish I had access to some of this information when I was in college, so I could have avoided some of the costly financial mistakes I made later on,” he noted. 

From understanding the risks of bad credit to budgeting for housing and living costs, The Hartford’s Playbook for Life is designed to help student-athletes make smart decisions as they plan for their financial future. The materials provide fundamental and reader-friendly information, along with references to additional resources.  Moreover, each Team Hartford member has a compelling personal story that resonates with student-athletes.

"Playbook for Life is proving to be a terrific resource for student-athletes,” said NCAA President Myles Brand. “Most recognize they stand to gain a great deal by learning to manage their money wisely. We are excited to be working with The Hartford to educate student-athletes nationwide about this essential life skill.”

More Student Statistics

• Nationally, the average debt burden is expected to be about $14,200, with nearly one-third (31 percent) of those polled saying they will have more than $20,000 to repay.
• Student-athletes in the North-Atlantic region anticipate the highest debt load – $16,000 compared to $13,000 for those in the South Central states.

Starting salary expectations among student-athletes are universally high.

• Student-athletes in the West expect to earn the most when they graduate, $68,750, compared to the lowest expectations of $62,000 for those in the North Central states.
• Nationwide, more than one-third (34 percent) of student-athletes surveyed expect to become a millionaire in their lifetime.  Those in the South Central states (38 percent) are most optimistic about attaining millionaire status, compared to those in the North Central states (31 percent).

While retirement planning is not top of mind for most college students, slightly more than half (52 percent) of the student-athletes surveyed plan to begin saving for retirement in their 20s.  Another 38 percent say they will begin saving in their 30s. Only 29 percent of those questioned think they will need to save more than $1million to retire comfortably at age 65.

• Student-athletes in the South Atlantic states (27 percent) are least likely, and those in the West (33 percent) are most likely to think they will need more than $1 million to retire.

Overall, more than half of college athletes nationwide (55 percent) have begun planning for life after college; A total of 59 percent of those attending schools in the West are putting together a financial game plan, compared to only 49 percent of those going to school in the South Atlantic region. 

Student-athletes in the West are also the most confident (68 percent) that they have enough knowledge to properly manage their finances; those in the North Central states are the least confident (61 percent).  The national average is 65 percent.

Playbook for Life

The Playbook for Life has brought its financial planning message to student-athletes at Columbia, Duke, and Rice Universities, the University of Hartford and Saint Joseph’s University.  Based on the initial success of the program, additional campus events are being scheduled for this fall and spring 2006.

In addition to Pinkett, other Team Hartford members include: Jennifer Rizzotti, former University of Connecticut and WNBA basketball player and University of Hartford women’s basketball coach; Brian Davis, president of Brian Davis Enterprises and former basketball stand-out at Duke University; Bill Poutre, professor of entrepreneurship, men’s golf coach and former golfer at the University of Hartford; Andre Mirkine, Certified Financial Planner™ practitioner, co-founder of the Sports Financial Advisors Association, former professional freestyle skier, and Clark University and semi-professional soccer player; Javier Loya, president and CEO of Choice! Energy, minority owner of the Houston Texans and former Columbia University defensive end; Anucha Browne Sanders, senior vice president, Marketing and Business Operations, New York Knicks, and former basketball player at Northwestern University; Kerry Phelan, vice president, Worldwide Consumer Products, Pixar Animation Studios, and former University of Connecticut tennis player.

The Hartford survey was conducted among 3,617 student-athletes in all NCAA divisions by Impulse Research Corporation in August 2005 with a margin of error of +/- 3 percent.

The NCAA is a membership-led nonprofit association of colleges and universities committed to supporting academic and athletic opportunities for more than 360,000 student-athletes at more than 1,000 member colleges and universities. Each year, more than 49,000 student-athletes compete in NCAA Championships in Division I, II and III sports. For more information, go to www.ncaa.org.

The Hartford is one of the largest financial services and insurance companies in the U.S., with worldwide revenues of $22.7 billion in 2004. The company is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property-casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford's Internet address is www.thehartford.com.

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially.  Investors should consider the important risks and uncertainties that may cause actual results to differ.  These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2004 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission.  We assume no obligation to update this release, which speaks as of the date issued.