FinTech News
“Robinhood Retirement For Independent Workers” Announced
Robinhood is bringing its Robinhood Retirement account to gig workers as part of a new program.
About the program:
This week, Robinhood announced the launch of Robinhood Retirement for Independent Workers. Under this program, gig workers and other independent contractors will not only be able to open an IRA with Robinhood but also receive financial counseling via GreenPath Financial Wellness. This includes unlimited access to a dedicated hotline, allowing workers to get their financial questions answered.
Robinhood Retirement for Independent Workers will launch with three initial partners: the product delivery service GoPuff, food ordering platform Grubhub, and the home service provider Taskrabbit. Robinhood Retirement will begin rolling out to gig workers with these three companies soon, while more partners are expected to be announced in the future.
Originally launched in January of last year, Robinhood Retirement allows users to open traditional or Roth IRAs and earn matching funds on their contributions. Specifically, regular Robinhood users can earn a 1% match while those with Robinhood Gold can earn 3%. This means that, if an independent worker contributes the 2024 IRA maximum of $7,000 (for those under 50), they’d receive either $70 or $210 in matching funds from Robinhood depending on whether they’re Robinhood Gold members.
Since Robinhood Retirement offers matching funds without an employer, the FinTech has previously highlighted the account option for self-employed workers. This includes introducing National Freelancer Day — which is coming up on March 10th.
What they’re saying:
Commenting on the new program, Robinhood’s Chief Broker Officer Steven Quirk stated, “Robinhood Retirement For Independent Workers brings us closer to our goal of giving everyone the financial tools they need to invest in their futures. Together with our first partners Gopuff, Grubhub, and Taskrabbit, Robinhood will now be able to offer a path to retirement savings for people who don’t have access to traditional retirement accounts or corporate matching programs.”
Additionally, Gopuff’s SVP of Business Daniel Folkman said of the program, “Amid an uncertain economic climate, it’s become more difficult for Americans to save and plan for their futures. So, as we continue to invest in and enhance the delivery partner experience, we’re proud to be among the first companies working with Robinhood to bring Gopuff delivery partners access to important retirement planning tools so they can improve their financial well-being.”
My thoughts:
Overall, I think this program is a smart move on Robinhood’s part as it puts their service in front of more workers. Of course, for the most part, these workers already have access to Robinhood Retirement as it’s open to all users. That’s why I’m also glad to see the company adding in the GreenPath Financial Wellness perk for those joining via the Independent Workers program as I feel that makes it more of a real offering and not just an ad. With any luck, this program will transcend corporate synergy and actually help independent workers save more for retirement.
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