Lottery - set for life - how does it work practically?
Discussion
Can anyone offer any insight as to how the National Lottery's "set for life" scheme works? 10k a month for 30 years, which is about 250k a year equivalent salary. Nice.
Does the lottery pay the £3.6m into a trust fund (coutts)? Does it become liable for tax?
A great as it would be to have, it doesn't immediately allow you access to luxuries - you still would have to save, get a mortgage for high value items.
No, I haven't won, I'd be likely getting advice from Coutts, otherwise!
Also: what would you do if you won it?
Does the lottery pay the £3.6m into a trust fund (coutts)? Does it become liable for tax?
A great as it would be to have, it doesn't immediately allow you access to luxuries - you still would have to save, get a mortgage for high value items.
No, I haven't won, I'd be likely getting advice from Coutts, otherwise!
Also: what would you do if you won it?
I think the worst part of this game is that it isn't linked to inflation. It could be worth approximately half of today's value in 20-25 years time.
Therefore I think the best bet would be to pay off any high value debts quickly, and invest the first couple of year's worth.
I'd carry on working to be honest, with the £10k going on a mortgage and into savings, and my salary being spent on the fun stuff, at least that way it feels like you're working for a purpose, the harder you work the harder you can play (obviously excluding the precious commodity of time!).
In answer to the post, it's taxed at source, the NL website gives some details on the practicalities.
https://www.national-lottery.co.uk/games/set-for-l...
Therefore I think the best bet would be to pay off any high value debts quickly, and invest the first couple of year's worth.
I'd carry on working to be honest, with the £10k going on a mortgage and into savings, and my salary being spent on the fun stuff, at least that way it feels like you're working for a purpose, the harder you work the harder you can play (obviously excluding the precious commodity of time!).
In answer to the post, it's taxed at source, the NL website gives some details on the practicalities.
https://www.national-lottery.co.uk/games/set-for-l...
You'd probably have to start self-assessing too, if you weren't already.
Agreed with some of the posts about still working. Absolutely could retire with that income, but as shown my initial thoughts would be to max out pension contributions and you'd still want to invest some money somewhere. With regard to working, I likely still would for a bit as you pay off mortgage etc, and then it gives you a bit more options to see what else you'd fancy trying career wise with a safety net.
Agreed with some of the posts about still working. Absolutely could retire with that income, but as shown my initial thoughts would be to max out pension contributions and you'd still want to invest some money somewhere. With regard to working, I likely still would for a bit as you pay off mortgage etc, and then it gives you a bit more options to see what else you'd fancy trying career wise with a safety net.
Definitely a young persons flutter...
No point playing that at 40+ etc. You need a big lump at any age over 40 I would say.
It will have been calculated with actuarial tables to take into account daft old gimmers playing it, winning and snuffing it two years later.
I would be miffed if I won and didn't get the full 30 years worth..
No point playing that at 40+ etc. You need a big lump at any age over 40 I would say.
It will have been calculated with actuarial tables to take into account daft old gimmers playing it, winning and snuffing it two years later.
I would be miffed if I won and didn't get the full 30 years worth..
peterperkins said:
Definitely a young persons flutter...
No point playing that at 40+ etc. You need a big lump at any age over 40 I would say.
It will have been calculated with actuarial tables to take into account daft old gimmers playing it, winning and snuffing it two years later.
I would be miffed if I won and didn't get the full 30 years worth..
If you die, what remains is given to your next of kin as a lump sum. No point playing that at 40+ etc. You need a big lump at any age over 40 I would say.
It will have been calculated with actuarial tables to take into account daft old gimmers playing it, winning and snuffing it two years later.
I would be miffed if I won and didn't get the full 30 years worth..
There used to be a scratch card called Rich for Life. I think the top prize was £40k a year - which was taxed.
phope said:
The payments from Set For Life are an annuity payment (a guaranteed income) - there are no NI contributions payable on annuity incomes
What about contributing to the "system" for use of the NHS and your state pension etc. I thought that's what NI contributions went towards? Thin White Duke said:
If you die, what remains is given to your next of kin as a lump sum.
There used to be a scratch card called Rich for Life. I think the top prize was £40k a year - which was taxed.
I don't think that's correct. There used to be a scratch card called Rich for Life. I think the top prize was £40k a year - which was taxed.
Camelot give you the remaining premiums they would have paid to the annuity provider.
That may well be much less than £10k a month
4. Annuity Policy Features
The Annuity Policy will include premium protection. This means that if You die before the end of the Annuity Payment Period, the Annuity Provider will pay Your estate a lump sum equal to the Annuity Policy Premium less the total of the gross Annuity Payments (or Capped Annuity Payments, if relevant) made until the time the Annuity Provider is notified of Your death.
According to the rules, if you're non-dom at the point at which you sign the annuity agreement you get the cash.
So, between the time you ring the Lottery to tell them you've won, and the date set for the annuity signing, you buy a house in Portugal and move sharpish.
Sounds like fun.
Not sure if you get to keep the cash if you then move back to the UK, but I can't see why not.
Plan B would be take the £10k per month and put it on black every month until you run out of Casinos that will let you in.
Plus C+H obviously.
So, between the time you ring the Lottery to tell them you've won, and the date set for the annuity signing, you buy a house in Portugal and move sharpish.
Sounds like fun.
Not sure if you get to keep the cash if you then move back to the UK, but I can't see why not.
Plan B would be take the £10k per month and put it on black every month until you run out of Casinos that will let you in.
Plus C+H obviously.
I've played this a few times (41 now so last few goes 
) and often thought I'd just carry on working for a bit and smash 8k a month mortgage for a few years whilst using my wages for living, wife can give up work and I'll get her a nice car.
Holidays a few times a year would be nice and not having to save for things like I do now ( when I say save I mean buy on a credit card and pay off later)
I'd prefer £150mill on one go but I'd take this whilst I wait for that.
) and often thought I'd just carry on working for a bit and smash 8k a month mortgage for a few years whilst using my wages for living, wife can give up work and I'll get her a nice car.Holidays a few times a year would be nice and not having to save for things like I do now ( when I say save I mean buy on a credit card and pay off later)
I'd prefer £150mill on one go but I'd take this whilst I wait for that.
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