Robinhood Stock Falls After Opening Retirement Account Waitlist With a 1% Match

Robinhood Stock

Robinhood Markets (NASDAQ:HOOD)

In a blog post published on Tuesday, the popular retail trading app Robinhood Markets (NASDAQ:HOODannounced that it will begin offering traditional and Roth Individual Retirement Accounts (IRAs) to its users. These accounts will come with a 1% match of the funds that the user contributes to the account.

Users may now sign up to be placed on a waiting list for Robinhood’s (HOOD) individual retirement accounts, with full availability expected to occur in January. After referring a friend to the Retirement service and having that friend sign up for the service’s queue, customers are eligible for early access to the accounts.

Against the background of unpredictable markets and increasing inflation that cuts people’s wages, HOOD stock has decided to make this step because they recognize the need for matching contributions and tax benefits. The unfavorable environment has led to a fall in the involvement of traders, as seen by the trading platform’s monthly active users, which fell to 12.5 million in October, a 36% decrease from a year earlier.

In an interview with CNBC, the CEO of Robinhood stated that “there might be less interest in investing than there was in 2020 and 2021,” but that “interest among retirement, particularly among Gen-Z and younger people, is really high,” and that “you have each successive generation of consumers interested in retirement at an earlier stage.”

According to reports from March, HOOD stock was apparently working on introducing retirement accounts as part of a drive to compete with established brokerages.

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