General Insurance Article - Which Lottery Prize would you choose


Congratulations – you’ve won the jackpot! Would you prefer £3 million now or £10,000 a month for the next 30 years? Not everyone chooses to live for the moment, according to new research by specialist financial services company Just Group that found younger adults were more likely to opt for the steady income stream while older people favoured the instant hit of the cash lump sum.

 Overall, seven in 10 (71%) said they would take a £3 million jackpot as cash while the rest (29%) opted for £10,000 a month for 30 years (giving a total return of £3.6 million).

 But there were distinct preferences by age group. A much higher proportion (44%) of 18-34 year olds opt for the monthly £10k prize compared to 36% of 35-54 year olds and just 12% of those aged 55+. Women were also slightly more likely to opt for the regular income than men (31% compared to 27%).

 “Younger people seem to be eyeing up their longer-term financial security compared to older people who are more likely to want to take the cash and live for the moment,” said Stephen Lowe, group communications director at Just Group.

 “The desire for long-term income is most pronounced among the 25-34 year old group with not far off half (44%) choosing to take the regular income.

 “For today’s young adult, perhaps with a large student loan and a less secure career, a generous income stream will ensure they have a comfortable life insulated against financial shocks or poor choices – it will be like winning a small lottery every month for their working life.”

 He said that the number choosing the income option falls to 17% of 55-64 year olds and 9% of 65-74 year olds, still high numbers considering that with greater age there is a falling likelihood of collecting over the entire 30-year term.

 “A £3 million lump sum is enough to guarantee a comfortable retirement if it is looked after,” said Stephen Lowe. “Anyone heading in to retirement with a lump sum at hand will benefit from professional advice to ensure they can still meet the competing aspirations of generating income, paying for care and providing gifts to family.”
  

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