Retail brokerage firm Robinhood is bringing the concept of a 401(k)-style contribution match to its retail customers who may not have access to a retirement plan through the workplace.
The firm announced this morning that, as a part of its Robinhood Retirement service, it will pay a 1% “match” on contributions its customers make to a individual retirement account. This is the first-ever match paid to retail IRA customers.
Some experts view Robinhood’s IRA match as a benefit that may encourage and boost savings, particularly among gig workers, younger investors and people of color — groups that are more likely not to have access to retirement savings at work.
Others are skeptical whether the relatively small dollar amounts at stake will amount to a positive behavioral shift, and wonder if it’s more of a marketing effort to stand out amid ample competition.
The service will roll out broadly in January 2023, but customers can begin signing up for the waitlist today, which will provide access on a rolling basis in the coming weeks.
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