How Singaporeans handle unexpected income changes from lottery winnings
How Singaporeans handle unexpected income changes from lottery winnings
By SMU City Perspectives team
Published 29 July, 2025
“Our study finds that lottery winners spend about half their windfall within a year, with spending patterns varying based on financial constraints. These findings suggest that economic stimulus policies may be most effective when targeted at liquidity-constrained households, providing useful insights for economic interventions to boost economic activity.”
Seonghoon Kim
Associate Professor of Economics; Deputy Director, Centre for Research on Successful Ageing (ROSA)
In brief
- Lottery winners spend about 50% of their prize money within 12 months.
- Households with tighter financial constraints tend to spend more of their lottery winnings.
- Governments must design effective public policies to develop and maximise social welfare
Methodology & References
KIM, Seonghoon and KOH, Kanghyock. Consumption responses to income shocks through lottery winning. (2024). Oxford Bulletin of Economics and Statistics. 1-25. Available at: https://ink.library.smu.edu.sg/soe_research/2725