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Financial Fact Friday: Robinhood wants to be your retirement fund, offering a 1% match

Robinhood, a stock-trading app that became a favorite of the "meme-stock" crowd during the pandemic, has a new proposition: Open an Individual Retirement Account with the service and it will match 1% of the funds customers contribute.
The company, which rolled out its new retirement savings program in December 2022, said it is the only IRA provider to offer a match on investments — a feature that is typical in many employer-based 401(k) programs. In such plans, an employer will typically match a worker's 401(k) contributions up to a limit, often between 3% to 6% of their annual salary.
According to Census data, such matches are typically only available as an employer-sponsored benefit, and only 1 in 3 Americans has access to a corporate retirement plan.

(Source: CNCB News)

FACT or FICTION: New survey results suggest that investors grappling with today's economic environment are feeling increased pressure on their retirement plans and are facing more uncertainty about when they will be able to retire.

FACT: According to the Nationwide Retirement Institute’s eighth annual Advisor Authority survey, inflation has led both women (38%) and men (26%) to rethink when they can retire. The number of men and women with near-term retirement plans is extremely low. Just 2% of men and 1% of women plan to retire within the next five years. Women (44%) are more likely than men (28%) to agree that signs of inflation and recession have made them rethink where they can retire.

(Source: ASPA)

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