Empower
Empower runs retirement recordkeeping and wealth management for 19.5M+ plan participants.
On the record
Checkpoint: Williams-Linzey v. Empower Advisory Group ERISA ruling on managed-account rollover fees
The call
Empower's recordkeeping core sits behind regulatory and contractual walls, while its smaller wealth unit faces AI-native competitors and a live ERISA lawsuit over fee practices.
Empower manages retirement accounts and workplace benefits for millions of people and employers, earning about $1.1 billion a year. The core business is hard to replace because employers sign long-term contracts and switching costs are high due to complex retirement rules and data, but its smaller retail wealth-advising unit faces real pressure from AI tools like ChatGPT and low-cost robo-advisors that do similar planning cheaper. A major lawsuit (filed August 2025) alleging Empower steered retirement savers into expensive accounts could reduce profits on wealth products and inspire similar cases if plaintiffs win, which would change how profitable this side of the business can be.
Why
01
AI pressure: Origin AI Advisor, PortfolioPilot, ChatGPT-based planning tools. AI tools threaten to commoditize account aggregation and financial planning in Empower's retail wealth arm, not its core recordkeeping business. Could AI do the core job? Only partly.
02
Bigger players: Fidelity and Vanguard. Both outrank Empower on digital experience and could win AI-native recordkeeping RFPs, though Empower keeps growing participants and assets. Could a giant copy it? No, they are blocked.
03
What protects it. ERISA custody rules, multi-year employer recordkeeping contracts, and the cost of switching 89,000 employer plans lock in Empower's core business.
What would change this call
Ruling or settlement in Williams-Linzey v. Empower ERISA suit (Schlichter Bogard, D.N.J.). Would show whether managed-account rollover revenue and retail-wealth cross-sell face legal/margin risk.
Milliman acquisition closing status through H2 2026. Shows whether Empower keeps growing scale via consolidation versus stalling.
Empower Personal Wealth net new asset growth rate in 2026 earnings releases versus 2025's 14%. Indicates whether AI-native planning tools and robos are eroding retail-wealth funnel.
Milliman acquisition closing status through H2 2026. Shows whether Empower keeps growing scale via consolidation versus stalling.
Empower Personal Wealth net new asset growth rate in 2026 earnings releases versus 2025's 14%. Indicates whether AI-native planning tools and robos are eroding retail-wealth funnel.
Key numbers
- $1.1B FY2025 base earnings, up 11%
- ~$2T AUA across 19.5M participants
- $340M Milliman deal adds $130B AUA
Named risks
- Williams-Linzey ERISA class action alleging misuse of participant data for managed-account rollovers, filed Aug 2025.
- Schlichter Bogard's litigation track record (two SCOTUS wins) could produce copycat suits against Empower.
- AI-native tools (Origin, PortfolioPilot) commoditizing Empower's free dashboard and retail advisory funnel.
- Fee compression in retail wealth unit versus lower-cost robos like Betterment (0.25% vs up to 0.89%).
- Milliman acquisition could stall or face regulatory delay before H2 2026 close.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Fidelity Investments | losing to | Ranked first on desktop and mobile digital experience vs Empower per 2023 Corporate Insight benchmark |
| Betterment | losing to | Charges ~0.25% advisory fee vs Empower's 0.49% to 0.89% tiered fee as of April 2026 |
| Vanguard | contesting | Larger scale in retail low-cost investing; Vanguard Digital Advisor cited as top hybrid platform alongside Empower, April 2026 |
| Origin AI Advisor | gaining on | AI Advisor reportedly scored 98.3% on CFP exam, cited as commoditization threat to Empower's dashboard, June 2026 |
| PortfolioPilot | gaining on | Positioned by commentators as more AI-native alternative to Empower's free tracking dashboard, July 2026 |
| Voya, Alight, TIAA | contesting | Named alongside Empower without an Excellent rating in May 2026 Corporate Insight virtual-assistant study |
Questions people ask
- Is Empower profitable in 2026?
- Yes. Empower reported record base earnings of $1.1 billion for FY2025, up 11% year over year, with Q4 2025 base earnings growth of 17%, as announced in a February 11, 2026 press release, indicating strong profitability heading into 2026.
- Could AI replace Empower's financial advisors?
- Empower's free dashboard and account aggregation tools face AI substitution risk from AI-native tools like Origin AI Advisor and PortfolioPilot as of mid 2026, but its core recordkeeping business, covering 89,000+ employer plans and 19.5 million participants as of December 31, 2025, is shielded by ERISA custody and compliance requirements.
- Who owns Empower?
- Empower is a private, wholly owned indirect subsidiary of Great-West Lifeco Inc. (TSX: GWO), a Winnipeg based publicly traded financial holding company that is itself majority controlled by the Desmarais family's Power Corporation of Canada group.
- What is Empower's biggest competitor?
- Fidelity Investments is Empower's largest competitor, ranked first on desktop and mobile digital experience in a 2023 Corporate Insight benchmark, and also dominant in retail investing; Vanguard is the other major incumbent threat in both recordkeeping and low cost retail advisory.
- Is Empower being sued over its 401(k) practices?
- Yes. Schlichter Bogard filed Williams-Linzey et al. v. Empower Advisory Group in New Jersey federal court on August 19, 2025, alleging Empower misused participant data to steer near retirees into managed account rollovers with combined fees up to 1.35%.
- Is joining Empower a safe career move in 2026?
- Empower's workforce grew 8.8% from 9,834 employees in 2023 to about 10,694 as of December 2025 per Revelio Labs data published June 29, 2026, and the company is actively acquiring, including a pending $340 million Milliman deal adding 800+ employees in H2 2026.
Timeline
- 2026-06-30Empower signs definitive agreement to acquire Milliman's retirement/benefits business for $340M
- 2026-02-11Empower reports record FY2025 base earnings of $1.1B, up 11% YoY
- 2026-01-13Blackstone joins Empower's private markets partnership program for 401(k)s
- 2025-11-05Empower reports Q3 2025 base earnings of $317M, up 10% YoY
- 2025-08-19Schlichter Bogard files Williams-Linzey ERISA class action against Empower in D.N.J.
- 2025-08-06Executive order directs DOL/SEC/Treasury to reassess private-market and crypto 401(k) access
- 2025-05-14Empower launches private markets investment program for 401(k) plans with Apollo, Goldman Sachs, PIMCO and others
- 2024-09-30Empower acquires Plan Management Corporation/OptionTrax for stock-plan administration
- 2022-04-30Empower completes acquisition of Prudential's full-service retirement business
- 2020-08-18Empower completes acquisition of Personal Capital for up to $1B
Revision history
22 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Empower Delivers Record Earnings of $1.1 billion (2026-02-11)
- Empower Reports Record Base Earnings of $317M for Third Quarter 2025 (2025-11-05)
- Empower Retirement closes acquisition of Personal Capital (2020-08-18)
- Empower reports base earnings of $255M in first quarter (2025-05-07)
- Empower strikes $340m deal to take on Milliman's retirement book (2026-07-01)
- Empower and MTA renew partnership (2025-08-19)
- Empower Retirement Number of Employees 2026 (2026-06-29)
- Empower Personal Wealth Number of Employees 2026 (2026-06-29)
- Is It Worth the High Fees? (2026-04-01)
- Empower (Personal Capital) Review 2026 (2026-05-18)
- Blackstone Joins Empower's Private Markets Partnership Program (2026-01-14)
- Empower Applauds Executive Order (2025-08-06)