Professor Kim Beom-jun explained that winning the pension lottery brings more happiness than winning the lottery.
On the 26th, the drawing event for the Pension Lottery 720+ was revealed at the new MBC building in Sangam-dong, Seoul. This event was organized to inform the public about the introduction of the pension lottery and the fairness and transparency of the drawing. This is the first time the Pension Lottery 720+ has opened its drawing event to the public. 100 attendees and reporters watched the event together.
The Pension Lottery 720+ is a lottery issued by the Ministry of Economy and Finance's Lottery Commission and sold by Donghaeng Lottery. The drawing broadcast is live every Thursday at 7:05 PM on MBC, hosted by announcers Kim Tae-kyun and Lee Ji-ae. Similar to the lottery drawing broadcast, it is conducted at the new MBC building with police from the Mapo Police Station and audience members present.
In the first part, Professor Kim Beom-jun held a talk show on the topic of "The Beginning of the Pension Lottery and the History of Lottery through Numbers," while historian Shim Yong-hwan discussed "The History of Korean Lottery."
Professor Kim Beom-jun stated, "The probability of winning is higher than the lottery, and it is advantageous in terms of taxes. The lottery is received all at once, resulting in a higher tax payment." He explained, "If you buy a 1,000 won lottery ticket, the expected value of the actual amount received when winning first place is 160 won for the lottery and 260 won for the pension lottery, making the pension lottery higher. Additionally, while the total actual amount received from the average winnings of the pension lottery and the lottery does not differ significantly, the pension lottery is somewhat advantageous in terms of winning probability and expected value per ticket."
There is a more important difference here: the happiness of the winners. Professor Kim said, "The happiness of high-stakes lottery winners decreases over time, and after a year, it returns to a level similar to before winning. Multiple small joys are more helpful in maintaining happiness than one big joy."
He added, "Winning a high-stakes lottery once can bring risks of investment failure, excessive attention from those around you, and changes in lifestyle. In contrast, the pension lottery provides small happiness every month for 20 years, allowing you to enjoy benefits without drastic changes in lifestyle. Therefore, if you have to choose between the two lotteries, the advantages of the pension lottery can be seen as greater."
Does Professor Kim have any recommendations for using the winnings? He advised, "If you win at the age of 40, maintain your current job until retirement. Invest the pension lottery winnings in a savings account. If you pay 22% in taxes, you will receive 5.46 million won monthly. After paying into a 2% regular savings account for 20 years, you can immediately enroll in a pension with that money after retirement. This way, you can receive 7.9 million won monthly at a 2% interest rate until you turn 80 after retiring at 60."
