Tonight's $1 billion Powerball drawing ranks among the largest ever, but inflation has played a surprising role in inflating the prize.

Rising bond yields have increased the value of the optional annuity that makes up the official jackpot. This makes it even less likely the winner would choose the annuity over the more popular but smaller upfront cash option.

There's a takeaway for retirement savers. The consortium running Powerball advertises the largest possible figure for marketing purposes. In smaller print beneath the estimated $1 billion jackpot is the cash payout of $433 million.

Compare that with a big prize advertised five-and-a-half years ago. In January 2021 the jackpot was only $731 million, yet the lump sum was $547 million.