Consumer Trends

Half of Investors Expect a Federal Tax Refund, and Slightly More Plan to Save It

Twenty nine percent say they will pay off debt

BOSTON, April 21, 2016 /PRNewswire/ — A recent survey of investors by John Hancock Financial found that 51 percent of investors expect to receive a Federal tax refund, and slightly more than half (53 percent) plan to deposit that refund check into a savings account.

About thirty percent say they will pay down outstanding debt. One in five (21 percent) say they will spend their refund.

Of the refund spenders, the top choice is to use the money to pay for a vacation.

One in five plans to spend their refund on basic household needs, eight percent say they will use it for a big ticket purchase, while six percent will indulge in a luxury item.

The findings were drawn from the first quarter 2016 John Hancock Investor Sentiment Survey, a quarterly poll of affluent investors.

The survey measures investors’ feelings about the current economic climate and their evaluations of what represents a good or bad investment given the current environment. The poll also asks consumers about their confidence in reaching key financial goals and likelihood of purchasing financial products and services.

About the John Hancock Investor Sentiment Survey

John Hancock’s Investor Sentiment Survey is a quarterly poll of affluent investors. The survey measures investors’ feelings about the current economic climate and their evaluations of what represents a good or bad investment given the current environment.

The poll also asks consumers about their confidence in reaching key financial goals and their attitudes toward specific financial products and services. This online survey was conducted by independent research firm Greenwald & Associates. A total of 1,008 investors were surveyed from February 8th to February 19th, 2016. Respondents were selected from among members of Research Now’s online research panel.

Of the refund spenders, the top choice is to use the money to pay for a vacation

To qualify, respondents were required to participate at least to some extent in their household’s financial decision-making process, have a household income of at least $75,000, and assets of $100,000 or more. Demographic information and other respondent characteristics are available upon request.

The data were weighted by age and education to reflect the population of Americans matching the survey’s qualification requirements. In a similarly-sized random sample survey, the margin of error would be plus or minus 3.15 percentage points at the 95 percent confidence level. Due to rounding and missing categories, numbers presented may not always total to 100 percent.

 

 

 

About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Assets under management and administration by Manulife and its subsidiaries were $935 billion (US $676 billion) as at December 31, 2015. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife can be found on the Internet at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.