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Empower Revolutionizes 401(k) Plans with Private Market Investments

5/15/2025

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Summary

Empower Diversifies Investments

Empower is introducing private market investments in 401(k) plans, collaborating with Apollo and Goldman Sachs.
This initiative seeks to diversify retirement portfolios by providing access to private equity, credit, and real estate via collective investment trusts (CITs).
Managed accounts will tailor investments to match individual risk tolerance and financial objectives.
Empower oversees $1.8 trillion for 19 million Americans, representing a major evolution in retirement investment choices.

Summary

Workers Boost Retirement Savings

In 2024, 50% of private industry workers participated in 401(k) plans, marking a historic milestone.
Automatic enrollment is standard in 61% of plans, often starting deferral rates at 4% or higher.
Over 78% of participants now utilize professionally-managed allocations for balanced portfolios.
Employers are enhancing financial well-being tools to support workers' diverse financial priorities.
Last year, 401(k) account balances increased by 10%, driven by market performance and better saving habits.

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Empower Diversifies Investments

Empower is introducing private market investments in 401(k) plans, collaborating with Apollo and Goldman Sachs.
This initiative seeks to diversify retirement portfolios by providing access to private equity, credit, and real estate via collective investment trusts (CITs).
Managed accounts will tailor investments to match individual risk tolerance and financial objectives.
Empower oversees $1.8 trillion for 19 million Americans, representing a major evolution in retirement investment choices.

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