Retailers waiting for the annual burst in spending that typically starts around now may find themselves a little disappointed in 2018. According to the National Retail Federation, more Americans than ever plan to hold onto their tax returns this year to either pad savings or pay down debt. That’s according to the association’s annual tax refund survey, conducted by NRF and Prosper Insights & Analytics.
“Tax return season is a time when consumers plan and prioritize financially, whether it is paying down debt or saving for a rainy day,” NRF President and CEO Matthew Shay said in a statement. “With the passage of tax reform and the expectation of more disposable income, we expect to see consumers prioritizing how and when they spend their hard earned dollars, especially during the back-to-school and holiday seasons.”
Of the 65 percent of taxpayers who said they expect a refund this year, 49 percent said they would put it into savings, up from 48 percent last year and the highest level in the 12-year history of the survey. Additionally, 35 percent said they’d use it to pay down debt, in line with last year’s total.