The PGA Tour pension plan has long been considered one of the most generous in all of sports, but what does that really mean? Part of the answer is contained in a 2025 annual report the Tour provided its membership and which GOLF.com reviewed.
The report details the financial status of the top tour businesses in 2024 and includes some chest-beating along the way. Among the points the Tour likes to highlight is the money it pushes into its members’ retirement accounts. While golf fans may marvel at the ever-increasing purses that players compete for each week, the Tour also has contributed $47 million to deserving player accounts in each of the past four years. Similar to a 401(k) account, this is money that sits until players can tap into it after their prime playing years are over, most often around age 50.
But while your employer will likely match a percentage (4% to 6%, perhaps) of your salary, the Tour rewards its players in multiple ways: first, for finishing strong in the rankings during the FedEx Cup season and, second, for cuts made by any member who has played at least 15 events that season.
In August 2024, when Scottie Scheffler won $25 million for winning the FedEx Cup$1 million of those winnings were deferred into his retirement account, just as a portion of the year-end bonuses were deferred for all 30 players who advanced to the tournament championship. Every player who didn’t advance — but still finished in the top 150 of the FedEx Cup — also earned a piece of the deferred pie. But that’s only half the story of the Tour’s retirement.
The tournament also contributes a certain amount — about $5,000 in 2024 — for each cut made by eligible players. For the first 15 players to make cuts in a season, they received a “point” ($5,000) of tournament contribution. For all the cuts made AFTER The first 15, they got two points ($10,000). Play a bunch of events and take a bunch of cuts and you won’t be returning to the normal workforce when your gaming career is over.
Surprisingly, the leader in the Cuts Plan club was not Scheffler and his perfect record of 19 cuts made in 19 starts. On the contrary, it was Mark Hubbardwho made 26 cuts in 30 starts in 2024, earning 37 “contribution” points, which totaled $187,881 in his retirement account. Make 20 cuts a season over a number of seasons and the money adds up quickly.
How fast? As of the end of 2024, 372 players had retirement balances of $1 million. Of that group, 179 had amassed balances of $3 million or more — and that’s all extra to regular and approved earnings. Remember, this is all according to accounting done at the end of 2024. Rest assured, players’ nest eggs have only grown since then.
3 things I’m thinking:
1. Patrick Reed is set. The (next) man to leave LIV Golf this year played so well during a three-week Middle Eastern blast that he has it all Race to Dubai points (on the DP World Tour) he will have to requalify for PGA Tour membership. With less than two months until the Masters, I bet we don’t see Reed play much in the DPWT. For one, he shouldn’t. For another, Texas is a long way from Europe.
2. LIV must be excited. This time a year ago, LIV Golf was nowhere near achieving world ranking points. Now they are getting some – albeit only for the top 10 players in each event – but this actually brings a nice boost to LIV’s top earners. Scottie Scheffler earned 15 points completing a playoff in Scottsdale while Jon Rahm earned 13 points completing a LIV playoff in Riyadh.
3. Gotterup’s gang. Much was made of how last week’s PGA Tour winner won while away at the wedding of one of his college golf buddies. Well, I happened to be there at Gotterup’s place, at Panago’s wedding in Winter Park, Fla., where the conversation all weekend revolved around the PGA Tour leaderboard. The one thing that could have made the weekend better? It happened when Gotterup hooped a birdie putt in the playoff for the win. Call it his wedding present.
