By Brokerage platform Robinhood unveiled its latest endeavor to assist gig workers from companies like Grubhub, Taskrabbit, and Gopuff in securing their financial future. The new Robinhood Retirement For Independent Workers product provides a variety of services and a matching incentive to support retirement savings.
Incentives for Gig Workers
Gig workers enrolled in the program can receive an investment match ranging from 1-3% during the first year. Additionally, they will have access to unlimited one-on-one financial counseling by phone through GreenPath Financial Wellness.
Future Expansion
While the initial focus is on employees from Grubhub, Taskrabbit, and Gopuff, Robinhood has plans to include more partners in the program in the future.
Addressing Retirement Anxiety
Amid growing concerns about retirement security, recent research by the National Institute on Retirement Security reveals that 79% of Americans view the current situation as a crisis, with 55% expressing worries about achieving financial security during retirement.
Positive Trends in Retirement Savings
While not all workers have access to retirement-savings accounts, investment giants like Fidelity and Vanguard have observed favorable trends among retirement investors. In January 2023, Robinhood launched its Robinhood Retirement service, which offers an improved matching program and financial counseling for gig workers affiliated with partner companies.
Robinhood Retirement For Independent Workers
“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,” said Steven Quirk, Chief Brokerage Officer of Robinhood.
Retirement Savings Challenges
According to Pew Charitable Trust, lack of access to a workplace plan is the most significant retirement savings challenge facing nontraditional workers, with 77% saying they would participate in a defined contribution savings plan if they were eligible for it.
Success and Growth
Robinhood has experienced good success with the Robinhood Retirement product so far: with nearly 500,000 funded accounts and $1.7 billion in assets under custody. The feature for independent works is “a natural next step for us in the retirement space,” Quirk said.
The Rise of Independent Workers
More people are moving away from traditional jobs to freelancing and side hustles to make a living. As of 2023, 73.3 million freelancers or gig workers are estimated to work in the U.S., according to Statista. That compares to about 57.3 million people before the pandemic, according to Gallup and Statista.
Retirement Concerns
More than half (53%) of gig workers consider their work to have a negative impact on their access to retirement and savings plans. Additionally, 45% don’t expect to retire before 65 and 30% never expect to retire, according to research from Legal & General Group PLC. Enhancing Financial Well-Being for Delivery Partners
In today’s uncertain economic climate, saving and planning for the future has become increasingly challenging for many Americans. This is why Gopuff, a leader in the delivery industry, is taking steps to support their delivery partners in securing their financial well-being.
Strategic Partnership with Robinhood
Daniel Folkman, senior vice president of business at Gopuff, highlighted the company’s partnership with Robinhood to provide delivery partners with access to essential retirement planning tools. This collaboration aims to empower delivery partners to take control of their financial futures and make informed decisions for long-term stability.
Investing in Delivery Partners
By investing in and enhancing the delivery partner experience, Gopuff demonstrates a commitment to supporting the financial health of its workforce. This initiative reflects a growing trend among companies to prioritize employee well-being and financial security in an increasingly uncertain world.
Empowering Delivery Partners
Through this innovative partnership with Robinhood, Gopuff is setting a new standard in providing comprehensive support and resources for delivery partners. By offering access to retirement planning tools, Gopuff is empowering its workforce to thrive and succeed in both their professional and personal lives.
In conclusion, Gopuff’s collaboration with Robinhood signals a significant step towards enhancing the financial well-being of delivery partners. By prioritizing long-term planning and stability, Gopuff is setting a positive example for companies looking to support their employees in navigating today’s economic challenges.
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