Empower earnings at new record as personal wealth, workplace units expand

Empower is celebrating strong growth for its business, driven by increased assets under administration for its Personal Wealth and Workplace Solutions units.

The retirement services provider administers around $1.6 trillion in assets for more than 18 million investors (at June 30, 2024) and has just reported its earnings for Q2 2024 revealing a 19% year-over-year increase across the business to a record high of $236 million. Gains were driven by strong organic sales, a rise in fee income resulting from higher equity markets, and higher surplus income.

Empower Personal Wealth, launched at the start of 2023 has successfully secured more individuals as clients who are already using Empower’s retirement plans but also individual investors who have been attracted by heightened brand awareness. This division saw AUA grow by 23% year-over-year during the second quarter thanks to stronger market performance and positive net flows.  

Meanwhile, the Workplace Solutions business saw AUA rise 14% year-over-year while its advisor-sold business (plans with under $50 million in assets) gained 35% year-over-year.

The firm has successfully secured clients in the public plan sector with 4.1 million public employees investing more than $240 billion in assets across Empower’s government business, as of June 30, 2024.  Public plan clients include County of Orange (California) with approximately $2.5 billion in assets and the Kansas Public Employees Retirement System with more than 27,300 plan participants who have saved approximately $1.3 billion in assets.

As well as growth, the second quarter of 2024 was significant for Empower as it completed the integration of Prudential and edged closer to launching its new Ready Select platform, designed to lower the barriers that small employers and start-ups face in offering 401(k) retirement plans to their employees.

Read next: Empower 401(k): A beginners guide to this 401(k)

“At the center of Empower’s value proposition is the delivery of advice and service to investors of all types who are coming to us in increasing numbers to provide retirement and wealth management services,” said Empower President and CEO Edmund F. Murphy III. “As the broader macroeconomic picture and the markets present challenges, we will continue to deliver what individuals need to help them on their path to greater financial security.”

Empower also recently announced a new hire to lead on strategy for its asset management unit.