Online gig economy platform Taskrabbit Inc. is providing U.S. gig workers with retirement benefits through a new initiative.
The program, in partnership with financial services firm Robinhood Markets Inc., provides workers with access to a match program for individual retirement account contributions. During the first year of enrolment, workers receive a two per cent match on their investment and then one per cent for every year after.
“Our decision to join [this] program stems from a deep understanding of the challenges faced by independent workers when it comes to saving for retirement,” says Morgan Courtney, director of supply operations and customer success at Taskrabbit. “A growing number of people are moving away from the usual nine-to-five [workday], shifting toward freelance jobs and the gig economy to make a living, but our traditional financial systems haven’t quite caught up yet. This partnership is intended to provide value and support to gig workers as they look to invest in the long term.”
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Through internal surveys and research, Taskrabbit discovered a significant gap in resources and options for independent workers to save adequately for their future, she adds. In the U.S., independent contractors on the Taskrabbit platform earn an average of $45 per hour, so the company wanted to ensure they’re equipped to make smart financial decisions.
“This retirement partnership provides gig economy workers with retirement investment options — specifically Roth and traditional IRAs — that are typically only available through traditional employer benefits. The program’s boosted match on contributions allows [workers] to actively contribute to their retirement accounts to maximize their retirement potential.”
In addition, the program provides personalized financial support through a financial education non-profit organization, including a dedicated phone hotline for financial questions. Access to financial counselling services will help provide independent workers with the guidance and support to navigate their financial goals effectively, adds Courtney.
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