The BlackRock Foundation and Commonwealth Research Reveals Majority of Low and Moderate Income Americans Now Invest in Capital Markets

Research Uncovers the Motivations, Behaviors, and Barriers Facing a New Generation of Investors

October 13, 2025 - A new national survey released today by The BlackRock Foundation and Commonwealth reveals that over 54% of Americans living on low and moderate incomes (individuals from households living on low and moderate incomes ranging from $30,000 - $79,999 annually) are currently retail investors in the capital markets. Among this cohort, more than half are new investors who began investing within the past five years. These findings underscore the democratization of retail investing and highlight the expanded reach of the capital markets, which is a key driver of household financial security.

Earlier this year, The BlackRock Foundation, a private charitable foundation established by BlackRock, and Commonwealth, a national nonprofit dedicated to building financial security and opportunity, launched The Investor Diaries, a research initiative to better understand and support investors living on low and moderate incomes. Today, the groups released a cornerstone of that effort: the results of a comprehensive national survey exploring who these new investors are, what's driving them to invest, and what they may need to build long-term wealth.

BlackRock and Commonwealth share a belief in the power of capital markets to advance financial well-being. In his annual letter, BlackRock Chairman and CEO Larry Fink writes about how the democratization of investing can help expand prosperity in more places, for more people. The BlackRock Foundation's mission is to help people living on low and moderate incomes earn, save and invest - earlier, more often and for their futures.

"Americans who historically lacked wealth-building opportunities are now taking bold steps to secure their futures," said Claire Chamberlain, President of The BlackRock Foundation. "Building on The BlackRock Foundation's work with Commonwealth to shore up short-term savings for families, we are excited to partner with them to better understand the ways in which we can support more first-time investors on their journey toward longer-term financial security and wealth building."

The data offers a unique look at investors living on low and moderate incomes who have entered the capital markets since 2020. The insights from this survey, along with the broader Investor Diaries initiative, can guide product design, outreach strategies, and investor education programs, to support this demographic of investors who have recently entered and/or are already engaged in the capital markets.

A New Generation of Investors, Motivated by Long-Term Goals

• Over one-third (37%) of investors living on low and moderate incomes who have entered the capital markets in the last five years plan to invest long-term, for at least 11 more years. 80% of this cohort plans to continue investing for at least three years or more.
• Newer investors are primarily driven by long-term goals. When asked to identify their current investment goals, of which they could select more than one, the most chosen goals were: retirement (37%), money for the future (35%), reducing financial stress (27%), and more money for their children/family (27%).
• 79% of newer investors are both investing in retail markets and saving for retirement.

Short-Term Financial Insecurity Disrupts Long-Term Investing

• Over one third (35%) of respondents reported having paused investing at some point.
• The top reason cited for those who paused and restarted was "not feeling financially secure enough to continue" (33%).
• Having to sell investments due to an emergency expense was top ranked among those who noted they were unable to overcome a challenge-underscoring the benefit of emergency savings as a foundation for investing.

Uncertainty is a Key Barrier for Today's Investors Living on Low and Moderate Incomes

• Uncertainty about what to invest in is the top reported challenge for respondents who are newer investors.
• Other reported challenges for this new cohort included concerns about risk, slow portfolio growth, and balancing investing with monthly and emergency expenses.

Investor Education Programs and Social Networks are Key to Expanding Opportunities

• Individual stocks are the most commonly held asset (69%) by newer investors. 34% of newer investors hold ETFs and 34% have mutual funds. This distribution highlights an opportunity to strengthen investor education on diversification practices.
• Among newer investors, the most common sources for learning about investing were video sharing sites (36%) and social media (35%).
• 90% of current investors know one or more people in their social circle who also invest, compared to 64% of non-investors-highlighting the importance of community influence.
• One in five newer investors (20%) stated that they are not currently investing for retirement, with 17% of those citing the lack of an employer-sponsored plan as the main reason. This underscores the need to expand access to retirement benefits-especially for workers in low-to-moderate income households-so more people can build long-term financial security.

Equipping Today's Investors to Invest with Confidence
The recent surge in participation among investors living on low and moderate incomes marks a pivotal opportunity. Millions who did not previously participate in financial markets have stepped in-and they're doing so with long-term goals in mind. Yet, many face persistent barriers, including a lack of short-term liquid savings, uncertainty about what to invest in, and limited access to trusted educational resources. To sustain this momentum and help ensure more Americans can build lasting wealth, it's crucial to equip today's investors with the necessary tools, resources, and support to expand opportunities for future generations.

"Our new research highlights the significant opportunity for the financial services industry to enable more Americans to build wealth: more than half of people living on low and moderate incomes are not just dipping a toe into investing, but motivated by long-term goals like retirement, homeownership, and financial security for their families," said Timothy Flacke, CEO of Commonwealth. "To turn this momentum into lasting wealth, the financial services ecosystem must meet their specific needs with tools that recognize their full financial picture, including access to short-term liquid savings. With the right tools, this growing group of investors has the potential to fundamentally expand who builds wealth in America."

Survey Overview
This survey, which examined retail investments outside of tax-advantaged retirement accounts, was conducted in January 2025 with a nationally representative sample of more than 2,750 respondents, all of which are individuals from households living on low and moderate incomes ranging from $30,000 - $79,999 annually. Respondents include those who are currently investing in capital markets and non-investors. Of those who are currently investing, Commonwealth examined and compared the motivations and behaviors of investors who entered capital markets pre- and post- pandemic, as well as non-investors who have never invested, have previously invested, and those who have no investing experience. The primary focus of the survey results is those that entered the market since 2020.

About The BlackRock Foundation
Guided by BlackRock's purpose to help more and more people experience financial well-being, The BlackRock Foundation focuses on increasing economic security for low- to moderate- income households by helping them earn, save and invest - earlier, more often and for their futures. With our partners, we support the building of a financial safety net to protect against shocks that widen disparities and make it easier to build wealth and support upward mobility.

About Commonwealth
Commonwealth is a national nonprofit building financial security and opportunity for people earning low- to moderate-income through innovation and partnerships. For over two decades, Commonwealth has designed effective innovations, products, and policies enabling over 2 million people to save nearly $8 billion. Commonwealth collaborates with consumers, the financial services industry, employers, and policymakers. Because Black, Latin, and women-led households disproportionately experience financial insecurity, we focus especially on these populations. The solutions we build are grounded in real life, based on our deep understanding of people who are financially vulnerable and how businesses can best serve them. To learn more, visit us at www.buildcommonwealth.org.

About The Investor Diaries
The Investor Diaries is a Commonwealth research project, supported by grant funding from The BlackRock Foundation, designed to understand the millions of new investors who entered retail capital market investing since 2020, particularly those with low and moderate incomes (LMI).

By following these investors through voice diary entries, a national survey, and with analysis of a large transaction data set representing millions of investment decisions by people with LMI, the project shines a light on their unique financial circumstances, motivations, behaviors, needs, and the role that capital market investing plays in the overall financial wellness of households with LMI.

This work aims to equip the investing industry, financial platforms, and policymakers with important insights to support and sustain this and future generations of new investors. https://buildcommonwealth.org/tid