The athlete has been struggling with hip pain for almost two years, which has prevented him from playing at his best.
However, Murray's impact on the tennis world is far from over.
He has made a name for himself as a champion of equality in the sport, regularly speaking out aginst sexism in the industry.
Read more: Touching tributes are pouring in for Andy Murray, who just announced his retirement from tennis in a tearful press conference
A successful playing career has also afforded the Scotsman the opportunity to work with sponsors, which often brings in more money than winning Grand Slams.
In fact, Murray, 31, has earned $61 million in prize money and just over $100 million in earnings from endorsements, bonuses, and appearance fees over his career, according to Forbes .
But unlike other world famous athletes like Usain Bolt , the Scottish tennis champion is frugal with his money, preferring to invest in small businesses and property to develop his multi-million pound fortune.
From luxury hotels to book deals and salad chains, here is how Murray makes and spends his $165 million fortune.
Edith Hancock contributed to an earlier version of this article.
Tennis great Andy Murray has announced he will retire from the sport this year and hell be leaving with a net worth of $165 million.
While $61 million of this fortune has come from prize money, just over $100 million is from endorsements, bonuses, and appearance fees.
2016 was Murrays most fruitful year, winning nine titles. He picked up a cool $2.5 million after winning his second Wimbledon mens singles title alone.
According to stats from the ATP, the 29-year-old made $16.3 million in prize money in 2016.
Murray was also listed at number 40 on Forbes list of wealthiest athletes for the year from July 2016 to June 2017, having made $28.8 million (including endorsements and appearances.)
The majority of his fortune comes from brand endorsements.
Murray signed a 15 million ($18.6 million), four-year sponsorship deal with Under Armour in 2015. Previously, he was sponsored by Adidas.
The Scot has also worked with a wide range of other companies, including Standard Life, sports equipment company Head, and watchmaker Rado.
He signed a sponsorship agreement with Jaguar, which paid the tennis player 1.5 million ($2 million) for an endorsement deal in 2016.
Murray also makes money through his own sports management company, 77 Management. The companys name was inspired by Murrays first Wimbledon triumph in 2013, when he became the first Brit to win the trophy in 77 years.
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77 Management controls the Scottish stars image rights. It is also the business he used to buy the luxury Cromlix House Hotel in Perthshire, Scotland, for 1.8 million ($2.2 million).
Murray spent 6 million ($7.5 million) of his own money renovating Cromlix House. It is surrounded by 50 acres of woodland, and also boasts its own chapel and trout loch. It was named the most luxurious hotel in Scotland at the Scottish Hotel Awards.
He has met famous faces throughout his career, including Prince William, who presented Murray with an OBE shortly after his first Wimbledon victory.
The tennis player has published two autobiographies, the latest of which first released in 2014 is titled "Seventy Seven: My Road to Wimbledon Glory."
Murray is also a keen investor in start-ups. In 2015, he signed a sponsorship deal with crowdfunding platform Seedrs.
Last year, he invested in a UK tennis company called Deuce, too, which is an app that helps tennis players find courts and coaching sessions across the UK.
As well as investing in start-ups, Murray advises businesses in the health, sport, and wearable technology markets.
Some of his multi-million fortune went on his wedding. In 2015, the tennis star married his long-term girlfriend Kim Sears at Dunblane Cathedral, before holding the reception at the Cromlix House Hotel.
The tennis star may also be spending money on his new family. In February 2016, Murrays first child Sophia Olivia was born, and Sears gave birth to their second daughter, Edie, in late 2017.
Murray doesnt flaunt his wealth as much as other sporting stars. In May 2016, he made plans to sell the Miami apartment hed owned since 2008 so that he could spend more time with his family. Murray put the penthouse on the market for 2.4 million ($3 million).
In 2017, Murray moved from his riverside London apartment to an $8 million (5.5 million) country mansion in Oxshott, Surrey, England.
He also sold the slick red Ferrari F430 hed bought in 2010 after just five months, as he found it too flashy and impractical.
Murray is a keen supporter of charities his annual tennis weekend, Andy Murray Live, raised 700,000 ($900,000) in 2017.
In 2018, Murray is thought to have earned $2 million (1,568,000), which, while a fair amount less than a couple of years earlier, is definitely still a pretty tidy sum.
Despite his success, Murray has recently been plagued with a hip injury which finally resulted in him telling press on Friday that he will be retiring at Wimbledon this summer, if not sooner.
Countless tributes have since poured in, with tennis greats like Nick Kyrgios and Billie Jean King showing their support for Murray.
Looking back at his career, one thing is clear while he may be about to retire, Murrays impact on the tennis world is far from over.
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