Brokerage platform Robinhood said Tuesday it launched an individual retirement account with a 1% match on every dollar contributed, targeting gig workers, people with side hustles and those building their own companies. Robinhood
is offering traditional IRA or Roth IRA with a 1% match, with zero commissions or account minimums for those who lack an employer-sponsored retirement plan. For the first time, Robinhood customers can have multiple brokerage accounts, making it easier to save for the future, the company said.
“We’re democratizing finance for all. This retirement product is next-generation. There’s not enough savings going on. We wanted to create something to reinforce good saving habits,” said Steph Guild, Robinhood’s head of investment strategy. The company, which has been in the crosshairs of the meme-stocks frenzy and fallout, said that tools that can make it easier to save for retirement — such as automatic transfers from a paycheck or contribution matching — are often not available to gig economy workers. Gig workers, such as ride-share drivers, pet sitters, food delivery drivers or freelancers, make up as much as 40% of America’s total workforce. Read: ‘There’s no retirement in this job,’ gig workers say Pew Charitable Trust recently found lack of access to a workplace plan is the most significant …