Nearly Two-Thirds Plan to Save Tax Refund

February 15, 2012 (PLANSPONSOR.com) - Most Americans who anticipate a tax refund this year won’t be spending it unwisely, according to a recent survey conducted by TD Ameritrade Holding Corporation.

Just over 50% of Americans expect to get a refund on either their state or federal tax return this year, and among them, 63% plan to save or invest at least part of the money they receive.  

Just 14% of respondents expecting a tax refund this year said they would use the money to splurge on luxuries like a new mobile phone or travel, but roughly half expect to use some of the money to pay down debt (51%) or pay for necessities like food or utility bills (48%).  

“While this pragmatism may be a result of current economic conditions, it’s nevertheless good to see that people are more likely to save their tax refund rather than perhaps spending it unwisely,” said Lule Demmissie, managing director, investment products and retirement at TD Ameritrade, Inc. “Contributing lump sums like year-end bonuses or tax refunds is one way to bolster a retirement account.”  

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