Empower Reports 13% Q2 Earnings Increase
Strong retirement plan sales, new client acquisition, and significant momentum across its expanding wealth and benefits platforms led Denver-based recordkeeper Empower to report a 13% year-over-year increase in second quarter 2025 base earnings, which totaled $247 million.
A press release today said the 13% increase compared to the same period in 2024 excludes the impact of invested asset write-downs of $37 million post-tax in Q2 2025 and $29 million in Q2 2024, and a favorable one-time fee income adjustment to earnings of $22 million in Q2 2024. The company’s results were released alongside those of parent company Great-West Lifeco Inc. Full Q2 financials are available at greatwestlifeco.com.
The number of workplace retirement plan participants served by Empower stood at 18.5 million on June 30, 2025, up 3% from a year ago, primarily reflecting solid organic growth over the past 12 months, the release said. Empower Workplace Solutions is expected to experience net plan inflows of $25+ billion for the second half of 2025.
Empower Personal Wealth net flows improved by 83% to $2.9 billion compared to a year ago, primarily on strong rollover and sales performance.
“Empower is delivering meaningful results by building a platform that reflects the full picture of financial well-being—from retirement and investing to health benefits and asset ownership,” said Edmund F. Murphy III, President and CEO of Empower. “We are committed to helping more Americans access the tools, advice, and investment choices they need to reach their long-term goals.”
New business units, capabilities
Today’s release also noted some new initiatives and capabilities. Among them:
• Empower Consumer-Directed Health: In Q2, Empower officially launched Empower Consumer-Directed Health, a new business unit offering a full suite of healthcare-related financial tools that complement employer retirement plans.
Designed to integrate with existing plan benefits and give individuals a more unified view of their health and financial wellbeing, product include Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), VEBA plans, wellness incentives, and lifestyle benefits.
• Access to private market investments: In May, Empower also announced a new capability allowing defined contribution plans to offer participants access to private market investments, including private equity, private credit private real assets.
These options will be available through institutional investment structures with fiduciary oversight, providing retirement savers with greater portfolio diversification and access to asset classes traditionally available only to institutional or high-net-worth investors.
• Zero Fee S&P 500 Index ISA: In a new move designed to reduce the cost of investing in retirement plans, Empower launched the first-ever zero-fee index fund designed specifically for retirement investors.
The new fund, the Empower S&P 500 Index Separate Account, offers broad market exposure with no management fees. By eliminating fees entirely, Empower said it aims to give retirement plan participants the full power of compound growth potential to help close the retirement savings gap for millions of Americans. The new fund, launched during second quarter, surpassed $2.5 billion in cumulative sales since its inception, highlighting strong demand from retirement investors seeking low-cost, transparent ways to grow their retirement savings.
SEE ALSO:
• Empower Offering Private Investments in DC Plans
• Warren Pushes Back on Empower’s Response to Private Market Exposure
• Empower Expands Health Benefits with CDH Offering
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
