More low- and moderate-income Americans are investing: report

More low- and middle-income earners are turning to investments, even as many consumers find it burdensome to cover rising daily costs, according to a new report.

Since 2020, the number of low- and middle-income investors has increased by 2.7 times, or 167%, according to new research from the BlackRock Foundation, a private charity. black rockand Commonwealth are national nonprofit organizations focused on financial security.

These findings are derived from JPMorgan Chase Research Institute data based on billions of anonymized data transactions from approximately 10 million active checking account users. The company tracked funds transferred to investment accounts but did not specify the types of investments selected.

The data includes low- and moderate-income investors, evenly split between those with median net incomes of $29,000 and $51,000 in 2024.

Commonwealth CEO Timothy Flack said: “We have real data that shows there has been a dramatic increase in the number of people participating in the capital markets over the past few years.”

This new study follows a study conducted by the BlackRock Foundation and the Commonwealth in January 2025, which found that more than half, or 54%, of low- and moderate-income Americans invest in retail capital markets. According to the results, more than half of investors started investing within the past five years.

2,750 people responded to the survey, which focused on households with annual incomes between $30,000 and $79,999.

According to the companies, several factors are driving increased investment participation rates among these cohorts since 2020. These include increased access to investment information and a wealth of online brokerages and trading apps that make investing easier, many with low minimum prices. COVID-19 stimulus measures increased cash available to consumers, and strong market performance provided further incentive.

Experts say affordability concerns are a headwind. Inflation has increased in response to the pandemic, peaking at an annual rate of 9.1% in the consumer price index as of June 2022. As of January, the consumer price index (CPI) rate for the past 12 months was 2.4%, and although the pace of inflation has stabilized, consumer prices remain high, raising concerns about the cost of living.

Low-income households tend to experience the highest inflation rates, according to a study by the Bank of America Research Institute.

Low- to moderate-income investors are more likely to invest if they have enough liquid savings (usually in the $1,500 to $2,000 range) to cover at least two weeks’ worth of expenses, according to research from the BlackRock Foundation and Commonwealth.

Additionally, the companies found that increases in short-term or seasonal income, such as tax refunds, bonuses, and non-recurring income, were also associated with increased investment activity.

The study found that low- to moderate-income investors invested about 30% more as a percentage of their income from 2020 to 2024 than from 2015 to 2019.

The stock market’s highs in recent years have made many Americans wealthier. Individuals who do not have money in the market are no longer able to obtain these benefits.

According to Gallup, 62% of Americans will say they own stocks in 2025, unchanged from 2024 and up from 61% in 2023.

According to Gallup, adults in households making more than $100,000, college graduates, and married adults are most likely to own stocks. People who are less likely to own stocks include unmarried adults, individuals with less than a high school education, and households with incomes of less than $50,000, the analysis and advisory firm said.

Similarly, in a January 2025 survey conducted by the Federal Reserve Bank of Philadelphia’s Consumer Finance Association, 57% of 5,000 adults surveyed said they did not own any stocks. The most common reasons cited by respondents were lack of funds available for investment and lack of knowledge about the stock market.

Without access to investments, especially stocks, individuals can miss out on compound growth, where profits accumulate based on both the initial investment amount and accumulated profits.

President Donald Trump recently announced plans to launch a retirement plan that would include up to $1,000 in annual government benefits targeted at workers who do not have access to employer retirement plans and are therefore less likely to benefit from recent market gains.

Claire Chamberlain, president of the BlackRock Foundation, said the financial industry could also build on recent investment momentum among low- and moderate-income investors, particularly by encouraging emergency savings.

“As the industry looks to support this new group of investors, how can we make that experience as successful as possible over the long term?” Chamberlain said.