Consolidation in the 401(k) recordkeeping space continued following the Labor Day holiday weekend. On Tuesday, September 8, 2020, Empower Retirement announced a definitive agreement to purchase the retirement plan business of MassMutual. Empower stated in its press release that the transaction, pending regulatory approval, is expected to close by the end of 2020. The entire enterprise will be branded “Empower Retirement.”
As independent advisors, HORAN sees this transaction as continued consolidation in a retirement industry working diligently to maintain competitive services commensurate with efficiency in pricing. The investment in technology to enhance end-user experiences by some providers continues to outpace the investment by others. The consolidation of these two formidable providers is expected to take place over an 18-month period. Empower has successfully integrated its services with others in the past, notably when Great West, Putnam and JP Morgan came together and rebranded as Empower Retirement.
While some providers such as Fidelity continue to focus on organic growth, this represents the third major consolidation of recordkeepers in the past two years. In 2019 we witnessed Newport Group acquiring PNC’s then-dedicated retirement platform and Principal Financial’s subsequent acquisition of the Wells Fargo retirement business.
Regardless of what recordkeeping platform your company may use, if you are a HORAN client, you experience dynamic and proactive consultative and advisory services from a team of dedicated retirement professionals who serve you and your employees.
For more information, contact Paul Carl, Vice President, at PaulC@horanretire.com or 513.794.8189