Wealth management division helps propel Empower to new records

The 10-year-old firm has seen strong growth in its assets, client base, and earnings.

Empower has achieved record earnings as the firm’s retirement and wealth management services posted strong growth in 2023.

As the firm marks its tenth year of operations, it’s celebrating full-year after-tax base earnings of $749 million and is managing more than $1.5 trillion in assets for 18.5 million clients. Base earnings have grown by 400% in three years, and its base return on equity in the U.S. has doubled in that same period.

Empower Personal Wealth, its wealth management business, which launched in 2023 through a combination of its legacy retail unit and the Personal Capital business it acquired in 2020, saw a 31% year-over-year growth in AUA to $72 billion, driven by net inflows and more favorable market conditions. Its wealth client base has soared 268% over the past three years at a CAGR of 54%.

For its Empower Workplace Solutions business, the firm reported 17% growth in assets to $1.5 trillion, served a record 17.9 million participants, and saw funded sales of $54 billion with a pipeline of $2 billion.

Empower is owned by Canadian firm Great-West LifeCo and is currently in the process of integrating the full-service retirement business it acquired from Prudential in 2022, with integration expected to be completed later this year.

“Through our investment, Empower has made a significant commitment to the retirement services market, and our intent is to build on that through continual service to employers, plan participants and the advisors who serve them,” said Empower President and CEO Edmund F. Murphy III. “Empower is extending its legacy of being a valued provider of financial services to more people who want financial advice, education, and investment expertise. The last year proved that we are positioned to grow this business and help our clients seize opportunities to build the financial security they want.”