Winning The Traitors could change your life – what to consider before spending the prize

With the final of The Traitors happening today and a potential £120,000 prize on the line, Claire Trott, Head of Advice at St. James’s Place, highlights the key considerations for anyone coming into a sudden lump sum.

Claire Trott, Head of Advice at St. James’s Place, comments: “With the final of The Traitors fast approaching, the winner or winners will soon walk away with a life-changing prize pot, potentially as high as £120,000. While winning a TV show may feel like a once-in-a-lifetime moment, coming into a lump sum is more common than people realise. Inheritances, redundancy payments, divorce, investments, business sales, bonuses and property downsizing can all result in significant sums arriving unexpectedly.

“When money is received suddenly, it can be very tempting to make quick decisions, whether that’s spending, investing, or giving money away. However, it’s really important to take a moment, to step back and reflect on how a lump sum fits into your wider financial picture, and the reasons you’ve received it.  In the first instance it’s worth thinking about your financial priorities, both in the short term, such as paying off debt or building an emergency fund, and over the longer term, such as retirement or leaving a legacy.

“Coming into sudden wealth can bring a whole host of emotions, responsibilities and complexities, and can change your life considerably. Having the right support in place can help you navigate this new world. Speaking to a financial adviser is a good place to start in helping you act with clarity and purpose rather than in haste. While a windfall may come unexpectedly, how you manage it now can be transformative to how it works for you in the future.”

Claire Trott outlines the key areas to consider before making any decisions around how to spend your lump sum:

1. The reason the money has been received:“The source of a lump sum often shapes how it should be treated. An inheritance may come with emotional considerations or long-term intentions, while a redundancy payment may need to support income for a period of time or an accident-related compensation payment may be designed to fund any future surgery or health requirements. Understanding why you have received the money is essential to help clarify the role it should play in your finances.”

2. How it supports your financial life goals:“A lump sum can be a powerful opportunity to accelerate long-term goals. It could help bring retirement forward, reduce financial pressure later in life, get you on the property ladder or support children or grandchildren. Thinking about how the money could improve your future, rather than just the present, is often a useful starting point.”

3. When you are likely to need the money: “Time horizon is crucial. While investing the money could generate significant returns over the long term, it’s not always the best option if you’re hoping to spend the money on short term goals such as getting on the property ladder. Markets are volatile, and investing at the wrong time could lead to a significant dip in savings. If you think you may need the money in the short to medium term, a more cautious approach may be appropriate. If it isn’t needed for many years, it may be possible to invest in a way that allows for short-term fluctuations in pursuit of longer-term growth.”

4. Your existing financial situation:“Before investing a lump sum, it’s important to look at the wider picture. This includes existing savings, pensions, outstanding debt and whether you have an emergency fund in place. A lump sum should complement your broader financial position, rather than being considered in isolation.”

5. Making use of allowances and deciding how to invest: “Tax-efficient allowances such as ISAs and pensions can make a significant difference to long-term outcomes, but they are often overlooked when decisions are rushed. Where you place a lump sum should be guided by your goals, time horizon and how much of your available allowances you’ve already used.

“ISAs can be a simple and flexible way to shelter money from tax, while pensions may be appropriate for longer-term planning if the time is right. Other options, such as Premium Bonds, may appeal to those looking for a tax-free easy access option, though returns are not guaranteed. Outside of tax-efficient wrappers, it’s important to remember that interest and investment gains may be taxable.

“For those looking to invest, a further consideration is whether to invest all at once or phase money into markets over time. Both approaches have merits, and the right choice will depend on individual circumstances. While investment outcomes can never be guaranteed, a lump sum such as £120,000 has the potential to make a meaningful difference if structured carefully and aligned to long-term goals.”

6. Consider speaking to a financial adviser: “While coming into sudden wealth can be an overwhelming and emotional experience, speaking to a financial adviser can help provide reassurance, clarity and make sure you’re acting with an overall view of your finances, in a way that sets you up best for the future.”