A New Era for Retail Investors Living on Low and Moderate Incomes
The The BlackRock Foundation and Commonwealth have released a major new report titled Retail Investors on the Rise, offering one of the most comprehensive looks yet at how Americans living on low and moderate incomes (LMI) are participating in financial markets. Developed in partnership with the JPMorganChase Institute, the report draws on billions of deidentified transactions from approximately 10 million active U.S. checking account holders between 2015 and 2024.
The findings reveal a significant and sustained increase in retail investing among households historically underrepresented in capital markets. The data not only track participation trends but also provide deeper insight into the financial conditions that help investors in this income group start—and continue—their investing journeys.
Participation Surges Since 2020
One of the report’s most striking findings is the dramatic rise in the number of LMI investors since 2020. The analysis shows that participation has grown by 167%—a 2.7-fold increase in just four years. This surge represents a meaningful shift in who is accessing and engaging with investment opportunities in the United States.
Growth has been especially pronounced among individuals at the lower end of income brackets. Participation among these households has nearly tripled since 2020, making them the fastest-growing segment of newer investors. This suggests that investing is no longer confined to higher-income households but is increasingly becoming part of the broader financial lives of working families.
In addition to rising participation rates, contribution levels have also increased substantially. Median investment contributions have grown by 77% since 2020. Moreover, LMI investors are allocating a larger share of their earnings toward investments than in previous years. Between 2020 and 2024, they invested approximately 30% more of their income compared with the 2015–2019 period. These figures indicate not only greater access to investment platforms but also a growing commitment to long-term financial growth.
Seasonal Patterns Reveal Investment Timing
The report also uncovers distinct seasonal trends in investment behavior. Investors living on LMI contributed the highest amounts to their investment accounts in January and December, with March and April following closely behind. Altogether, 37% of annual investment activity occurs during these four months.
This pattern suggests that investing activity is closely linked to income spikes. Year-end bonuses, salary adjustments, and tax refunds likely play a significant role in enabling households to invest larger sums during these periods. For many LMI households, these financial boosts provide rare opportunities to set aside funds for longer-term goals.
The seasonal concentration of contributions highlights the importance of timing and liquidity. When households experience temporary increases in available cash, they are more likely to channel a portion of those funds into investments.
The Critical Role of Liquid Savings
While participation is growing, the data also underscore a key factor that influences whether investors stay engaged: liquid savings. According to the report, having even a modest financial cushion significantly increases the likelihood that LMI investors will continue investing.
Specifically, the analysis shows that investors in this income group are more likely to maintain investment activity when they have at least two weeks’ worth of liquid savings—roughly $1,500 to $2,000. This buffer appears to serve as a stabilizing force, reducing the need to withdraw investments during financial strain.
The findings suggest that liquid savings act as a leading indicator of sustained investment participation. Without emergency reserves, households may feel compelled to pause or reverse investment activity when faced with unexpected expenses. Conversely, a small savings cushion can provide the confidence needed to remain invested.
From Research to Action: The Investor Diaries Initiative
This latest report is part of The Investor Diaries, a broader research initiative launched by The BlackRock Foundation and Commonwealth. The initiative aims to better understand the behaviors, perceptions, and needs of investors living on low and moderate incomes.
Earlier phases of the research included a national survey on financial habits and perceptions, as well as qualitative insights gathered from voice diarists who documented their investing experiences. By combining large-scale transaction data with personal narratives, the initiative provides a multifaceted view of how LMI households engage with capital markets.
Claire Chamberlain, President of The BlackRock Foundation, emphasized the significance of the trend, noting that more Americans are becoming owners in the U.S. economy and gaining direct access to its growth. She highlighted the opportunity—and responsibility—to ensure that these newer investors are supported in building long-term financial security.
Designing Better Support Systems
Beyond documenting trends, the report outlines practical implications for financial institutions and policymakers. The strong correlation between liquid savings and continued investing suggests that building financial resilience and promoting investment participation should go hand in hand.
Seasonal income increases and even modest savings buffers are associated with higher levels of investing activity. This points to several potential strategies:
- Encouraging emergency savings alongside investing accounts
- Providing timely reminders or “nudges” during income surge periods
- Offering integrated products, such as high-yield savings accounts paired with brokerage accounts
Timothy Flacke, CEO of Commonwealth, stressed that platforms have an opportunity to help investors sustain their capital market participation by strengthening liquidity features. Tools that allow customers to build accessible savings while investing could enhance both financial resilience and wealth-building outcomes.
Chris Wheat, President of the JPMorganChase Institute, added that the research highlights both the momentum and fragility of investing among LMI households. By grounding decisions in real-world transaction data, industry leaders can design solutions that make investing more accessible, stable, and supportive of long-term prosperity.
Advancing Economic Securit
Guided by BlackRock’s mission to expand financial well-being, The BlackRock Foundation focuses on increasing economic security for low- and moderate-income households. Its work centers on helping families earn, save, and invest earlier and more consistently, while building safety nets that protect against financial shocks.
The Retail Investors on the Rise report demonstrates that investing is no longer out of reach for millions of Americans living on low and moderate incomes. Participation is expanding, contributions are increasing, and ownership of financial assets is becoming more inclusive. At the same time, the data make clear that sustained progress depends on strengthening liquidity and building financial resilience.
As retail investing continues to democratize access to capital markets, ensuring that new investors are supported with the right tools, savings buffers, and guidance will be essential to turning momentum into lasting financial security.
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