annuity

The perks of the contract include an annual $50,000 retirement annuity over and above his salary.

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.