You hear on the news about the winners that struck it lucky in Powerball or Mega Millions, but then all goes quiet. Privacy laws mean winners don’t have to make their identities known to the public. But actually what happens after a big win is what you probably want to know about! You want to see the luxury cars, big houses and private jets that jackpot winners buy.
The reality of jackpot winners’ lives may be much different than you think. We did some research to help you visualise what it must really be like to be a lottery champion. Also, looking at data related to this group, the realities are surprising.
- Lottery winners seldom keep to their original plans of what to do with their riches.
- Many people share their money with their family.
- Jackpot winners find it difficult to implement good financial management and may lose their fortunes within years of winning.
- Some winners spend money on interesting things like waterparks and TV shows.
- Winning the lottery changes your life in more ways than you think.
Comparison: What SA Lottery Winners Say vs What They Really Do
In South Africa, you will rarely get the opportunity to get a glance of the private lives of lottery winners, simply because many choose to stay anonymous. Along with not paying tax on lottery winnings, there are other laws that benefit players, since they can choose to retain their privacy.
But researchers have been able to obtain some feedback from winners. This reveals that what people plan to do with a big win rarely plays out in reality. The information and graphs below showcase this well.
What Do People Say They’ll Do with Lottery Winnings?
The one group that was studied incorporates general lottery players. Whether they enjoy Daily Lotto or international games like Eurojackpot, they have certain opinions on how they would spend their millions, if they were so lucky to get a lottery jackpot. Many of these areas of spending may be on your own list of items you think you’ll prioritise when you win.
What Do People Really Do When They Win a Lottery Jackpot?
Interestingly, once there’s a jackpot winner in real life, it seems their priorities tend to change. Or perhaps certain spendings are simply easier to do, or seem more important in the spur of the moment. For various reasons then, when you talk to jackpot winners, you’re likely to discover their spending is more in line with this data below.
This reveals interesting facts about SA players. For example, not as many winners pay off debt or buy a house, although this is often mentioned in interviews with jackpot winners. However, the wins do affect many lives, as many South Africans tend to share the riches and donate some money to their families – even if they didn’t originally intend to.
International Winners: 5 Examples of What Lottery Winners do with Their Money
- Interesting entertainment ventures: Lottery winners have funded everything from water parks to TV shows.
- Travel the world: Seeing the world is a popular activity for lottery winners, and they tend to take along family members to treat them to the luxurious lifestyle.
- Supporting the family: Winners give their money to the family.
- Education: Some winners opt to work wisely with their money and invest it in their futures in the form of paying off tuition fees.
- Play more games of luck: One win often motivates people to see if they may have a lucky streak on their way. They may keep on playing the lottery for years to come, in the hope of winning big again, or head to places like Las Vegas to play in the casinos.
Global View: What to Expect After Winning the Lottery
Talking to lottery winners of the past can also help you prepare for your future wins. Below are some tips and realities many of them wished they knew about before they got the money:
- ‘Big win’ is relative: ZAR1 million sounds like a lot, until you get it and start comparing yourself with those who got larger jackpots. Decide now to be content with what you win, so you can simply enjoy it.
- Your lifestyle will change: Your money will empower you to live differently than before. Because your friends and family may not always have the ability to partake – such as not being able to pay for an overseas holiday – be prepared to enjoy the money on your own, make friends with others who have bigger bank accounts, or pay for friends you want to take along on luxurious experiences.
- Temptation to spend: Studies show that as much as 70% of lottery winners have nothing to show after 5 years, as they either spend or lose the money. Practice healthy habits now already, so you’re less likely to fall into the trap of overspending.
- Friends and family will ask for money: Lottery winners are sometimes guilted into fixing their family and friends’ money problems. Some loved ones may not want to talk to you again if you’re not willing to help. Prepare yourself for these social challenges.
- Be prepared to talk about money: If people know you’re a lottery winner, they will often make it a topic of conversation when talking to you. Be prepared to answer personal questions, such as whether you still have some of the money or whether it was lucky numbers that helped you win.
Final Words
In general, there seems to be a difference between what we expect the life of lottery winners will be like, and the reality. Some winners do make wise decisions and better their own and other people’s lives. However, it is often a challenge to adjust to a lifestyle where you have easy access to money.
In preparation for the day when your lucky numbers or lottery strategy gets you a big win, do your homework, talk to a financial expert and have a plan in place that will ensure your riches benefit you for decades to come.
Important Notice:
- Information on lottery winners is often limited, due to privacy laws. Our article is based on available data.
- During our research, we considered multiple factors that can influence outcomes. However, there may be additional factors not taken into account.
- Outcomes and trends may adjust over time and we plan to update our information if and when possible.
- Our list of sources include:
FAQ
Experts advise lottery winners to talk to a financial advisor and you can do this even before you claim your winnings. They can tell you about how to best benefit from the situation, such as putting the money in a trust and or investing it wisely so you don’t spend it too quickly. These experts can also help you stay anonymous, for example by letting a lawyer claim on your behalf, if local laws allow this. This is helpful if anonymity is a priority for you.
Experts can also advise on tax issues. South Africans don’t have to pay tax on all lottery winnings, but certain rules apply if it’s your main source of income.
When amounts less than ZAR2,000 are claimed in store, players get cash in their hands immediately. You’ll also get money almost immediately when using online platforms.
Larger prizes that will be paid to your bank account, whether from the National Lottery or a lottery site, may take a few days to reflect. When you win big, also be prepared for a claims process that could take up to two weeks, as you’ll need to submit certain documentation first. But once approved, the money will usually reach you in about 2 business days.
Many personal details about South African lottery winners are kept private. However, it’s public knowledge that one lottery winner was 70 years old. He won over ZAR30 million in a Powerball Plus game in 2022.
You must be at least 18 years of age to legally play the lottery in South Africa. 18 is also the age of the youngest ever lottery winner who bought a ticket with her boyfriend of 20 years old. It was a jackpot win and the couple won over ZAR6 million in 2003.