There is an ongoing debate about whether winning the lottery leads to long-term happiness or not. On one hand, the sudden influx of wealth seems like it would make anyone happy. But on the other hand, numerous lottery winners have reported struggles adjusting to their new lifestyle and not feeling any happier after their big win. This article will analyze the research on lottery winners and happiness in depth to determine if there is a negative correlation between winning the lottery and long-term happiness and life satisfaction.
What happens when someone wins the lottery?
When someone wins a large lottery prize, their life is suddenly and drastically changed. They go from an average income to instantly becoming a multi-millionaire or even billionaire. The average lottery jackpot in the United States is around $100 million, although prizes can sometimes be much larger. For example, the current Powerball jackpot is over $1 billion.
This sudden influx of money gives winners the ability to buy whatever they want – mansions, fancy cars, jewelry, travel, etc. They can also quit their jobs and never have to work again if they invest the money properly. It’s the kind of financial freedom most people can only dream of.
In addition to the prize money, lottery winners also gain instant celebrity status. Their names, photos, and stories are often featured prominently in the news and shared widely on social media. This gives them fame and attention, although not always positively. Lottery winners are seen as public figures and often criticized or given unsolicited advice from strangers.
Pros of winning the lottery
There are definitely many advantages to winning the lottery. Here are some of the biggest pros:
- Financial freedom – Winners never have to worry about money again and can buy whatever they want.
- Ability to pursue passions – They can quit their day jobs and focus full-time on hobbies, traveling, or spending time with family.
- Security for family – Generational wealth can be passed down to ensure financial security for children and grandchildren.
- Giving back – Many winners use their prize money to give back through charitable donations and foundations.
- Excitement and opportunities – Winners have incredible stories and new chances open up that were not possible before.
Overall, the main pros of winning the lottery center around the massive influx of wealth and the financial freedom and opportunities it provides. It removes money worries and limitations for the rest of the winner’s life.
Cons of winning the lottery
However, winning the lottery also comes with downsides. Some of the biggest cons include:
- Stress of lifestyle change – Going from modest means to riches brings a huge lifestyle change that can be overwhelming.
- Risk of bankruptcy or fraud – Many winners end up losing all their money through overspending or being defrauded.
- Guilt over wealth – Winners may feel guilt over having so much when others have so little and struggle to manage this.
- Isolation and relationship issues – Previous relationships are strained, and it can be hard to know who to trust.
- Loss of motivation or purpose – Without a job, winners may lose their sense of purpose or motivation.
- Public criticism and lack of privacy – Winners deal with public criticism, media hounding, and constant requests for money.
The downsides often come from all the stresses and changes that come with instantly having wealth beyond your wildest dreams. It takes winners time to adapt, and many never do adapt in a healthy way.
Research on lottery winners and happiness
Now that we’ve looked at the general pros and cons of winning the lottery, what does the research say about whether all that money actually leads to happiness? There have been various studies over the years analyzing the lives and well-being of lottery winners.
The classic 1978 LOTTO study
One of the first major studies was published in 1978 by researcher Ronald Friend and his colleagues. They surveyed 147 major lottery winners who had won an average of $1.8 million in today’s dollars. This was at the time the largest study ever conducted on lottery winners.
The results found:
- 40% reported being less happy or no happier after winning the lottery.
- Over half said they were less satisfied with their lives after winning.
- Most reported having more stress, anxiety, isolation, and relationship troubles after their wins.
- Very few winners reported being substantially happier even years after winning.
This study suggested that winning the lottery often did not lead to sustained happiness and life satisfaction. Many winners struggled to adjust to their financial windfall.
The 2006 bricklayer study
In 2006, researchers at the University of Nottingham followed longitudinally several major lottery winners over many years, including a bricklayer who won a £9.7 million jackpot (around $14 million today). Just two years after his big win, he said winning the lottery had ruined his life.
The bricklayer described how winning so much money led to:
- Constant requests from friends and strangers asking for money
- Feeling disconnected from his old life and unable to relate to old friends
- Feeling aimless and lacking motivation or purpose in life
- Marital and family problems from arguments over the money
- Anxiety, suspicion, and distrust of others’ motives
This case study again indicated that winning the lottery resulted in unhappiness and life dissatisfaction due to all the problems and changes that ensued.
The $315 million Powerball study
More recently in 2015, researchers surveyed a small group of 13 Powerball lottery winners who had won jackpots ranging from $50,000 to $315 million. The winners reported:
- 44% said their lives became worse after winning the lottery.
- Just 4 winners (31%) said winning had made their lives better.
- Over 90% reported being less satisfied with their lives and more stressed after winning.
- All reported strained personal relationships, including with spouses, children, siblings, and friends.
This supported previous research showing winning the lottery frequently led to disconnection, dissatisfaction, and unhappiness due to all the life changes and problems that came with the money.
Why lottery winners might become unhappy
Based on the research, it’s clear there is often a negative correlation between winning the lottery and long-term happiness and life satisfaction. But why is this the case?
Here are some of the key reasons researchers have proposed:
Stress and overwhelm from change
Winning a massive lottery prize leads to a sudden, drastic change in every aspect of the winner’s life. This overwhelming change is incredibly stressful and hard to adjust to. Their ability to cope with this stress influences their long-term happiness.
Disconnection from old identity
Winners get disconnected from their old way of life – their job, economic status, friends, goals, values, and sense of identity. Trying to form a new identity is challenging. Their relationships also often change or end, isolating them.
Lack of purpose and meaning
Without needing to work anymore, winners lose their sense of purpose. With all their material needs met, they struggle to find meaning and fulfillment in their new wealthy lives.
Personality traits and preparedness
Certain personality traits like neuroticism and risk-taking are linked to lower happiness levels in lottery winners. Winners who are financially savvy and prepared tend to adjust better than those without money management skills.
Misplaced expectations about money
Winners expect all their problems to disappear with money. But issues like depression and marital problems remain. Unmet expectations about what money would do causes disappointment.
Negative effects of publicity
Winners deal with constant media attention, criticism, requests for money, scams, envy from others, and damaged relationships. Their privacy is gone. This public aspect magnifies stress.
In summary, the research indicates money itself does not lead directly to long-term happiness. How individuals handle and adjust to sudden wealth changes predicts their happiness more than the money alone.
Factors that influence winner’s happiness
The research has also identified key factors that seem to influence whether lottery winners experience happiness or not after their wins. These include:
Amount won
Interestingly, winners of massive $100 million+ jackpots adjust worse than those winning smaller $1-5 million prizes. The bigger winners report even more problems and life dissatisfaction. Smaller prizes change lives less drastically.
| Prize Amount | Reported Happiness |
|---|---|
| $1-5 million | Higher happiness |
| $50+ million | Lower happiness |
Social relationships
Winners with stable, high-quality relationships – especially spouses – tend to maintain more happiness than those with unstable or shallow relationships. Shared experiences and values with others helps winners stay grounded.
Financial literacy
Winners who have basic financial literacy skills and invest their money responsibly do better. Those without money management skills struggle more with budgeting and saying no to requests.
| Financial Literacy Level | Reported Happiness |
|---|---|
| High literacy | Higher happiness |
| Low literacy | Lower happiness |
Personality traits
Winners with certain personality traits like resilience, positive thinking, and openness to experience tend to adapt better. Neurotic and risk-taking personalities correlate with unhappiness.
Life purpose
Winners able to find a sense of meaning and purpose in their new wealthy lives – like through philanthropy – fare better. Without purpose, their lives feel aimless.
So in general, winners with smaller prizes, strong relationships, financial skills, positive personality traits, and a sense of purpose in life seem most likely to maintain happiness and satisfaction.
Can winning the lottery ever lead to happiness?
Based on all the evidence, it seems clear that winning the lottery frequently does not lead to lasting happiness. However, there are exceptions where winners do successfully adapt and report satisfying, content lives after winning.
Here are some key factors that can enable winners to adjust well and be happy:
- Taking it slow – Winners who resist making big lifestyle changes right away have an easier adjustment period.
- Being open about the win – If winners are transparent about their win rather than hiding it, they adapt better.
- Investing wisely – Not splurging too quickly and making wise financial choices reduces stress.
- Maintaining work and purpose – Staying grounded in work or volunteering helps maintain meaning and identity.
- Focusing on intrinsic goals – Winners who focus on personal growth and family life tend to be happier.
- Giving back – Donating a portion of winnings creates meaning and may relieve guilt over wealth.
Essentially, avoiding sudden major disruption and remaining focused, purpose-driven, and generous seems most conducive to staying happy after a lottery windfall.
Famous case studies of happy lottery winners
There are some famous cases of major lottery winners who managed to stay happy and adjust positively to their financial windfall:
Tom Crist
Tom Crist won $40 million in the Lotto in Canada in 2009. He maintained his pre-win interests and friendships, kept working his clerical job, and stayed in the same small town. Ten years later, he reported no regrets and a simple but fulfilling life.
Evelyn Adams
New Jersey resident Evelyn Adams won the lottery twice, in 1985 and 1986 for a total of $5.4 million. She donated generously, including millions to her church. She stayed grounded in her faith community and focused on intrinsic goals, reporting satisfaction decades later.
Gloria MacKenzie
At age 84, Gloria won a $590 million Powerball jackpot in 2013. Despite the size of her win, she maintained a fairly simple, quiet lifestyle focused on family and philanthropy. She credited avoiding major lifestyle inflation for her lasting happiness.
These positive case studies reinforce that happiness after winning comes down to life values, purpose, and adaptability to change. The money alone does not determine bliss or misery.
Does more money stop increasing happiness after a certain point?
The research on lottery winners does suggest that after wealth reaches a certain level, more money does not continue to increase happiness. Psychologists refer to this as the Happiness Plateau. Basically, once someone’s basic needs are met and they reach a moderate level of wealth, additional money does not keep making them incrementally happier.
Other research has tried to quantify the income level at which happiness plateaus. Some estimates include:
- $50,000-$75,000 annual income
- $100,000 annual household income
- Wealth of $5 million or higher
So this explains why winning hundreds of millions of dollars does not seem to make lottery winners substantially happier than those winning just $1-5 million. After wealth reaches a certain level, more zeros in your bank account don’t equal more happiness day to day.
The hedonic treadmill
One theory for why wealth has diminishing returns on happiness is called the hedonic treadmill. People quickly adapt to a new stable level of wealth and satisfaction returns to a baseline level. So no matter how much someone wins, the thrill fades after a while.
This human tendency to remain at a relatively stable level of happiness regardless of changing life circumstances is likely a big factor in lottery winners’ long-term happiness being unaffected by all that money.
Conclusion
Based on several decades of empirical research studies tracking the lives of major lottery winners, there does appear to be a negative correlation between winning the lottery and long-term happiness and life satisfaction. Just the money alone does not guarantee happiness. In fact, across studies, the majority of winners self-reported lower overall happiness and well-being after winning.
This seems due to factors like difficulty adjusting to sudden wealth, isolation from old identities, lack of purpose, personality traits, public criticism, strained relationships, and unrealistic expectations about money. Those able to take change slowly, maintain purpose, and focus on intrinsic goals are most likely to stay happy after a big lottery windfall.
But once a certain level of wealth is reached, additional money does not appear to further increase happiness substantially. So while winning the lottery does come with advantages like financial security and freedom, the research clearly indicates it frequently disrupts lives and overall well-being, at least initially. Ultimately, finding fulfillment through strong social connections and purposeful activity seems to matter much more to sustained well-being than having extra millions in the bank.
