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Data & Research March 17, 2011
Only 5% Plan to Put Tax Refund toward Retirement
A survey from Capital One Bank found that more than one-third
(37%) of Americans plan to spend all or part of this year’s refund.
Reported by Rebecca Moore
Some of the ways consumers plan to spend their refunds are on everyday expenses (23%), clothing and accessories (11%), a vacation (6%), or an iPad, TV or other electronics (4%). Five percent plan to save their refund for retirement, and 5% plan to set the money aside for their childrens’ college education.
Of consumers polled, 31% plan to save at least part of their tax refund, and another 19% plan to use their refunds to pay down debt.
For those consumers who will owe taxes this year, about one-third (34%) report that they will need to dip into their personal savings to cover the cost. About the same percentage (35%) have set aside savings specifically for taxes, and about one-fifth of those who owe taxes (21%) are unsure how they will pay their taxes this year.
The findings are from 1,037 telephone surveys conducted by Braun Research from March 3-9, 2011.