Data & Research February 16, 2018

Americans to Use Tax Reform Pay Bump for Financial Wellness

A survey of 1,000 Americans found 35.7% of respondents are going to use the money to pay down debt faster, 12.8% are going to use the money to save more for retirement, and 3.5% are going to use the money to invest in the stock market.

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Americans’ report monthly paychecks have increased by an average of $130.76 in February due to the new 2018 tax plan changes, according to LendEDU’s newest survey.

The survey of 1,000 Americans found 35.7% of respondents are going to use the money to pay down debt faster, 12.8% are going to use the money to save more for retirement, and 3.5% are going to use the money to invest in the stock market.

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Asked what types of debt they are going to pay down faster as a result of additional take-home pay, 62.18% of respondents selected “Credit card debt” and 25.77% selected “Student loan debt.”

In addition, nearly half (47.66%) of respondents said they believe they will be able to retire sooner as a result of the tax reform. Research from Willis Towers Watson found more than one-quarter (26%) of 401(k) plan sponsors have already or are planning or considering increasing their contributions to their plans. Still, 39.06% of respondents to LendEDU’s survey said they don’t believe they will be able to retire sooner.

More than half (55.3%) said they are more confident in their financial future.

More results from the survey can be found here.

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