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> banking on your incapacity to calculate for inflation

$43M / year for 30 years sounds like a pretty good retirement in any sort of inflation short of catastrophic economic collapse.

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I was suggesting they likely offer now-payout-total + maybe 20% over 30 years. But at say 5% inflation you're worse off than taking the money now and having it work for you. Their main motivation in doing so is obviously to smooth out their accounting (cheaper to service their debt over time) but if they can simultaneously discount the payout by exploiting financial illiteracy, then why not?

> but if they can simultaneously discount the payout by exploiting financial illiteracy, then why not?

You're not entirely wrong - your total expected payout is better if you take the lump sum and invest wisely. However if you don't trust yourself to have good discipline and strategy and annuity version isn't entirely crazy. Your EV is lower but you can't completely screw yourself.

Having your money "work for you" requires discipline, awareness, and trust in economic stewards far beyond what the average lottery player is capable of managing. The annuities still offer life-changing sums of wealth, but also guaranteed to give you 30 years to learn how to handle that much rather than accidentally spending it all in 3 years.

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