annuity

If the winner picks the annuity option, they will one payment immediately and then 29 annual payments, increasing by 5% each year.

A winner who selects the annuity option would receive one immediate payment followed by 29 annual payments that increase 5% each year.

However, the market is favourable to anyone currently buying an annuity - a retirement income for the rest of their life, bought only once.

Administrative costs total only 0.5% of annual benefits, about a quarter of the percentage cost fifty years ago, and far cheaper than private retirement annuities.

Tuesday’s winner can opt for an annual annuity that pays out over 30 years or claim a $409.3-million lump sum.