Fewer workers plan to use their tax refund to pay off bills, and more plan to use it for savings, indicating stronger faith in the economy, a survey of 3,900 people by CareerBuilder found.

Thirty-six percent of workers plan to put their tax refund in a savings account, up from 34% last year. Forty-six percent will use the money to pay off bills, down from 56% last year.

Although a large number of people are living paycheck-to-paycheck, 61%, this is down from 77% last year. Further, 79% haven’t reduced their 401(k) accounts or personal savings in the last year.

“Even though fewer workers are living paycheck-to-paycheck and are saving more, workers’ wallets are still feeling the strain of the past few years,” said CareerBuilder Vice President of Human Resources Rosemary Haefner. “As the economy gradually rebounds and strengthens, workers are gaining confidence. We’re seeing this already as more are investing in their future and preparing for challenges down the road.”

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