|Posted: June 5, 2015, 10:51 am - IP Logged|
Don't forget that with the graduated annuity, you're getting a 5% raise every year. In year 1, you're getting about $225,000. In year 10, it's $350,000. In year 30, it's over $900,000. If the trend of the last thirty years continues, this will easily outpace growth in 95th-percentile household income.
If someone in 1985 had won 6.7 million (the equivalent of 15 million today, adjusting for inflation), and had gotten it as an annuity following the current MM payment schedule, their payment this year would be about $415,000.