With the April 30 income tax deadline passed, BMO Financial Group has announced the results of a study that indicates that more than half of Canadians who will get a refund this year will invest the money or use it to reduce household debt.
According to the study, conducted by Leger Marketing, almost three-quarters (74%) of Canadians will get or anticipate getting a tax refund this year.
Last year, the average individual tax refund received was $1,506, according to the Canada Revenue Agency.
Those receiving a refund this year plan on putting it towards the following:
- paying household bills, credit card balances, mortgages and other debt (37%);
- saving or investing (16%);
- travel and leisure (8%); and
- home renovations (6%).
Tina Di Vito, head of BMO Retirement Institute, said, “It's encouraging to see that more than one-third of Canadians are using their refunds this year to lower their overall debt-load.
“It’s especially important for Canada’s boomers to focus on reducing debt as they approach retirement. Although it may be tempting to splurge on items, paying off debt will be more beneficial in the long run.”
