Only 5% Plan to Put Tax Refund toward Retirement

March 17, 2011 (PLANSPONSOR.com) - A new survey from Capital One Bank finds that more than one-third (37%) of Americans plan to spend all or part of this year’s refund.

Among the ways consumers plan to spend their refunds is on everyday expenses (23%), new clothing and accessories (11%), a vacation (6%), or an iPad, TV or other electronics (4%). According to a press release, only 5% of respondents plan to save their refund for retirement, and 5% plan to set the money aside for their children’s 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, the announcement said. 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.   

Rebecca Moore
editors@plansponsor.com