A 20-Year-Old Canadian Sparks Lottery Debate with Surprising Choice
When 20-year-old Brenda Aubin-Vega from Quebec hit the jackpot in the summer of 2025, she did something unexpected: she turned down a $1 million lump sum and opted for $1,000 a week for life. Her decision went viral, sparking debates across social media—even catching the attention of Binance founder Changpeng Zhao.
Most winners take the lump sum, but Brenda’s choice flipped the script. While Canadians don’t pay taxes on lottery winnings like in the U.S., she preferred a steady income stream over one big payout. Critics questioned her logic, while supporters praised her long-term thinking.
Lump Sum vs. Annuity: What’s the Difference?
Before picking how to claim your prize, it helps to know your options:
-
Lump sum: One-time cash payment, basically the jackpot’s cash value at the time of the draw.
-
Annuity: A series of payments over time—sometimes for life. In U.S. lotteries like Mega Millions or Powerball, annuities are paid annually over 30 years, growing about 5% each year.
Even if something happens to the winner, remaining annuity payments can go to heirs—or even be sold for a lump sum if desired.
What Most Winners Do
A study of Powerball winners from 2003–2009 found more than 93% took the lump sum. Why? Many people believe they can invest it and grow the money faster than the annuity.
For example, Binance’s Zhao tweeted that Brenda would be better off taking $1 million today and investing it—maybe even in Bitcoin—while still spending $1,000 a week. But financial experts warn that market investments are riskier than the guaranteed growth of annuities. The stock market can dip for years, and bad choices can drain winnings fast.
The Risks of Big Wins
Lottery winnings can bring more stress than joy. According to the American Bankruptcy Institute, lottery winners are more likely than average to declare bankruptcy within 3–5 years. Estimates vary, but up to 70% of winners may face financial trouble, with more conservative figures around 33%. Poor investments, gambling, or sudden lifestyle changes often play a role.
“Either way, a substantial amount of lottery winners end up in bankruptcy court,” the institute notes.
Why Some Experts Favor Annuities
Despite the hype around lump sums, researchers argue annuities can be financially smarter:
-
Higher lifetime payout: For example, if Brenda lives to 85, her $1,000 weekly annuity could total over $3.3 million, compared to the $1 million lump sum.
-
Lower risk: Guaranteed payments protect against market swings.
-
Safety and privacy: Staying out of the public eye and receiving installments helps avoid scammers, thieves, or opportunists.
Other tips include staying employed for a sense of normalcy and having fewer idle hours to spend recklessly.
Making the Right Choice
Financial advisers say there’s no one-size-fits-all answer. When deciding, consider:
-
Age and health: A 65-year-old might benefit more from a lump sum since life expectancy could make annuity payments slower to accumulate.
-
Personal goals: Reflect on your short- and long-term plans before making a decision.
-
Trusted advisers: Financial planning can turn a thrilling win into lasting security.
“Winning the jackpot can be exhilarating, but smart planning separates fleeting thrill from long-term security,” says Lauren Wybar, senior wealth executive at Vanguard.
In the end, whether you go for a lump sum or annuity, it’s all about balancing risk, lifestyle, and peace of mind—Brenda’s viral choice reminds us that there’s more than one way to win smartly.
Login