Empower Says New Retirement Plan Sales Reached $110B in 12 Months

By Alex Padalka October 26, 2020

Empower Retirement says its recent string of acquisitions has resulted in $110 billion in funded and committed sales in the 12 months ending September 30.

The recent growth represents a new record in the company’s six-year history, according to a press release from Denver-based Empower. During this period, the company added new 401(k), 457(b) and 403(b) defined contribution plans, including 64 new clients, 130 new public plan clients with over $50 million in assets, 15 not-for-profit clients and more than 3,200 advisor-sold clients with less than $50 million in assets, Empower says.

In August, Empower closed its acquisition of the RIA Personal Capital, which Empower says is used by more than 2.5 million customers.

And in September, Empower reached agreements to acquire the retirement businesses of Mass Mutual as well as Fifth Third. When closed later this year, the acquisitions will bring a further 2.5 million new participants to Empower’s recordkeeping platform, the company says.

“Empower is experiencing a period of significant and transformative expansion through an intense focus on how we can better serve the needs of more individuals, their employers and the advisors who assist them,” Empower president and CEO Edmund Murphy III says in a statement. “With this level of growth, we have the ability to develop new opportunities to serve all of these stakeholders.”

In addition, the company says that it “has dramatically increased the scale and scope of its business to accompany a much wider set of retirement plans and a broad new offer to serve a more complete array of financial needs for millions of retirement plan participants and individual investors.”

Empower administered $667 billion in assets as of the end of June for over 9.7 million retirement plan participants, the company says. Meanwhile, Personal Capital, which is a hybrid wealth manager subsidiary of Empowerment, oversees more than $13 billion in assets, according to Empower.

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