Just two years after implementation, Empower today announced that its Personal Wealth unit has surpassed $100 billion in assets under administration (AUA).
According to Empower, the unit has seen a 25% annual compound growth rate since its launch and has reported an 83% increase in new net flows compared to June last year. The organization’s Personal Wealth side employs over 1,500 financial advisors and offers wealth management services for individuals and families, investing, savings strategies and tax-sensitive planning, among other offerings.
Empower also credits its Personal Wealth dashboard offering for the growth, which allows individuals to link accounts across banking, credit cards, mortgages, investments and retirement savings.
“Because Empower Personal Wealth operates alongside Empower’s Workplace Solutions retirement services business, we believe we are in a unique position to help individuals with both saving for retirement within their employer plans as well as achieving broader wealth goals,” said Empower Personal Wealth President Carol Waddell in a statement.
The Denver-based recordkeeper’s Personal Wealth side was established in January 2023, following an internal merger of digital wealth manager Personal Capital and Empower Retirement Solutions Group. Empower had previously acquired Personal Capital in 2020.
The news comes during a transformative period for the wealth management industry, as more retirement industry groups adopt services and acquire wealth managers to prepare for the trillions of generational wealth expected to pass down in the years ahead.
“As historic wealth transfer reshapes the financial landscape, we believe Empower Personal Wealth is uniquely positioned to guide clients through this moment of opportunity,” added Empower’s President and CEO Edmund F. Murphy.
A 2024 report by Cerulli projected that through 2048, wealth transfers will total $124 trillion with $105 trillion expected to flow to beneficiaries.
About 81% of all transfers will come from Baby Boomers and older generations, who will end up moving close to $100 trillion. Over 50% of the overall total volume of transfers, expected to be $62 trillion, will come from high-net-worth and ultra-high-net-worth investors, who currently account for 2% of all households, reported Cerulli.
Studies have shown that employees are also seeking comprehensive financial guidance services that extend towards holistic offerings like wealth management services.
Empower administers approximately $1.8 trillion in assets for more than 19 million individuals.