Empower Wealth Unit Reports 29% Asset Growth

Empower Records Growth Amid Wealth Management Expansion ‍

Empower, the nation’s second-largest ‍retirement savings administrator,‌ demonstrated strong financial performance in ‌2024, fueled largely‌ by‌ robust growth in its wealth management division. This division achieved 29% growth, managing an remarkable ‍$86 billion in average assets under management.

“At the ‍center of Empower’s growth strategy⁢ is the ‍delivery of financial advice to more ‍people in⁢ new ways,” declared Edmund Murphy, Empower CEO, in a recent statement.Empower has strategically built up⁣ a ⁢team of 1,000 advisors to offer wealth management solutions to individuals.This includes extending services to individuals within its massive platform, home⁣ to 19 million retirement plan participants ⁣with‌ combined ⁢assets nearing $1.8 trillion.

A ‌key driver for this growth‍ segment has‍ been harnessing rollover activity from defined contribution plans. Rollover sales generated important momentum ‌in ‍the‌ fourth quarter, contributing⁤ directly ⁣to Empower Personal Wealth‌ bringing in over $3 billion in‍ fresh assets. Notably, net inflows alone accounted for 12% of ⁢total asset growth throughout 2024.

Empower’s decision ⁤to prioritize financial advice‍ aligns directly with industry trends. As Paul Mahon, Great-West Lifeco‌ President adn CEO, explained in a recent earnings call, a flourishing workplace division naturally fuels personal wealth offerings: “A ⁢thriving ⁢workplace ‍business fuels the growth of our personal wealth offering.“

⁤Empowr solidified its commitment to wealth management back in ⁤2020 with the acquisition ⁤of​ Personal Capital for $1 billion. Under Roger Hobby,​ a former Fidelity Investments executive ⁤brought⁤ onboard as ​Head of Advisory & ‌Distribution,‍ Empower⁤ has strategically​ positioned ⁢its⁢ wealth division within its broader growth⁣ strategy.

Empower continues to attract growing numbers‌ of workers. ⁤Its ‍core retirement platform, which serves these individuals, ‍amassed 600,000 ​additional participants‍ in 2024,⁣ increasing year-on-year plan participant ​numbers⁤ 3.4%. Additionally,assets⁤ under administration within this space experienced a ample 22%⁢ year-on-year increase. ​nevertheless,Empower noted an outflow trend ⁣impacting the broader ‍industry,facing withdrawals totaling $13.8 billion from defined contribution assets ‍throughout the year. ​This trend,despite‍ the overall gains,highlights⁢ continued‍ economic uncertainty

Empower,as an ⁢overall ‍division,achieved record earnings of $973‌ million in 2024,marking a significant 30% betterment over the prior ⁢year. Great-West LifecoS performance for the ⁣quarter indicated adjusted earnings per share of $1.14, representing a 12% growth compared to⁢ last year.Remarkably, Great-West surpassed​ analyst expectations on Yahoo! Finance, exceeding expectations by⁤ 6 cents. This achievement underscores the successful execution of Empower’s ⁤growth strategy within Great-West Lifeco.

While economic headwinds remain, Empower’s ‍ focus on advice-driven financial solutions⁤ positions them strongly for future success. With a robust client base, ongoing acquisitions,⁤ and a‍ team of dedicated⁤ financial professionals, Empower continues to‍ revolutionize the personal wealth management landscape.‍

What do you think⁤ are the biggest challenges ‍facing the industry today, and how‌ is ⁢Empower navigating these challenges?

Empower Records Growth Amidst Wealth Management Expansion

An interview with Roger‌ Hobby, Head ‌of Advisory & Distribution at⁣ Empower

Archyde: ​Roger,⁤ empower ‌has experienced​ tremendous success in 2024, particularly⁤ within ⁢its wealth management division. Can you shed light on the key drivers behind this impressive growth?

Roger ⁢Hobby: Certainly. At Empower, we’ve always believed ⁤in delivering financial advice to empower more people on their wealth journeys. Our focus on expanding access to personalized financial guidance has been‌ instrumental in this success. We’ve strategically built a team of 1,000 advisors who are dedicated to helping individuals‍ achieve their financial goals.

Archyde: EmpowerS ⁣acquisition⁣ of ‌Personal Capital in 2020 played a significant⁢ role in this growth trajectory. How has⁢ that integration influenced your wealth management offerings?

Roger Hobby: The acquisition of Personal Capital was a pivotal moment⁢ for us. It ⁤considerably broadened our ⁣capabilities and‍ expertise in providing complete wealth management solutions.We’ve been able to leverage‌ their advanced technology and‌ robust platform to enhance our existing⁤ services and ‌offer a more holistic experience to our ‍clients.

Archyde: ⁣what role has⁢ leveraging​ rollover activity⁣ from defined contribution plans played in this growth?

Roger Hobby: Rollover activity has been ‍a significant⁤ driver of growth, particularly‌ in​ the fourth quarter of 2024. Individuals are increasingly looking ​to ⁢consolidate their retirement ​assets ⁢and seek professional guidance on how best to⁤ manage their wealth. We’ve seen​ a considerable influx of assets from rollovers into our Empower Personal wealth platform.

Archyde: As the ‍industry​ shifts towards advice-driven solutions,⁢ how is Empower adapting to meet these evolving client needs?

Roger Hobby: The shift towards‍ advice-driven‌ solutions is a ‍clear trend, and we’re embracing⁢ it wholeheartedly. ⁢We’re constantly investing⁤ in our advisors, training, and technology to ensure we can provide‍ the highest level of personalized ⁣guidance and support to our clients. Our goal is⁤ to empower ‌individuals to make informed financial‍ decisions and build a⁤ secure future.

Archyde: Empower’s commitment to⁤ offering financial advice to a wider audience is commendable. What is⁣ your vision for the future​ of wealth management at Empower?

Roger Hobby: ‌We⁢ envision‌ a ‍future where financial advice is accessible and​ affordable ‌to ⁢everyone. We’re committed to leveraging technology and innovation to break down barriers to entry and make financial well-being a reality for individuals from ‍all walks of ​life.

We ⁤want to⁢ build upon our momentum and continue to expand our​ reach and‍ impact,empowering our clients to achieve financial success and peace of mind.

Archyde: What do ⁣you think are ⁤the biggest challenges facing the industry⁤ today,and how is Empower navigating these⁢ challenges?

roger ⁤Hobby: ‍ I think one of the biggest challenges is bridging the ⁢affordability gap in wealth management. Many individuals struggle ⁢to access quality financial​ advice due to high fees or limited ⁤availability. We’re committed to finding innovative solutions to make our‌ services more accessible and ⁢affordable to a broader ⁣range of clients.