Robinhood Is Rolling Out a Critical Investment Option for Side Hustlers The company's offering is geared towards the many people "relying on themselves."
By Amanda Breen Edited by Jessica Thomas
Robinhood Markets, Inc. probably isn't the first financial services company that comes to mind when you think about retirement.
But the electronic trading platform is trying to change that. On December 6, it announced an IRA option with a Robinhood 1% match for every dollar contributed — no traditional employer required.
Related: How to Tell If Your Data Was Leaked in Robinhood's Massive Security Breach
Robinhood enjoyed massive popularity at the beginning of 2020. With stocks at historic lows, many first-time investors in their 20s and 30s started trading on the platform, attracted by its zero commission fees, per CNBC.
And though the platform associated with hyper-gamified investing and the GameStop controversy of 2021 might not seem like the clear choice for a retirement account, the company's doing its best to alter that perception, emphasizing what its offering gives those outside of the traditional workforce.
"People are relying on themselves," the company stated. "They're taking on gig work, side hustles and building their own companies. 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 the gig economy — which makes up as much as 40% of America's total workforce."
The waitlist for Robinhood retirement is now open. Once accepted, users will be able to open either a traditional IRA or Roth IRA and invest in stocks and ETFs; after their first contribution, they'll have access to their funds and the ability to invest up to $1,000.
Related: Elon Musk Questions Robinhood CEO Over GameStop Stock Drama
Robinhood Markets, Inc. is down nearly 60% year over year.
