Empower Proposes Blockchain for Retirement Rollovers

The retirement provider suggests using new technology to speed up asset transfers and reduce administrative burdens.

Updated on Oct. 27, 2026 in Retirement Planning

Bold flat-color editorial illustration showing a series of stacked geometric blocks, representing the structural nature of blockchain financial technology. — Empower has submitted a proposal to the IRS advocating for the use of blockchain and smart contract technologies to streamline retirement asset rollovers. AI Illustration. Upload story photo >

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Should federal regulators prioritize new digital technologies over traditional administrative procedures for financial transactions?

Empower has submitted comments to the Internal Revenue Service advocating for the integration of blockchain and smart contract technologies in retirement rollovers. The firm argues that these tools could modernize the current multi-step process mandated by federal regulations.

Why it matters

The company believes that adopting emerging technology would significantly reduce transaction times and bolster fraud prevention measures. Empower warns that current proposed regulatory requirements could lead to increased costs and administrative complexities for the industry.

Empower currently administers approximately $2 trillion in assets for over 22 million investors across the United States. The firm ranks as the nation's second-largest retirement plan provider by total participant count.

The players

Empower

Empower is a major financial services firm based in Greenwood Village, Colorado, that specializes in retirement plan administration.

Internal Revenue Service

The Internal Revenue Service is the federal agency responsible for tax law enforcement and the administration of retirement plan regulations.

The details

Empower suggested that a shared blockchain network could provide real-time transaction tracking and verification capabilities. Smart contracts would automate the process by verifying security requirements before assets are moved, a shift from the five-step, four-form process currently under consideration.

Over 30 million Americans are expected to reach age 65 between 2024 and 2030.
Empower submitted its official comments to the Internal Revenue Service on October 27, 2026.

Market Dynamics

This proposal reflects a broader effort to modernize aging financial infrastructure in response to the requirements established by the SECURE 2.0 Act. It signals a shift toward automating legacy processes as the industry prepares for the retirement of a massive demographic cohort.

If adopted, these technologies could eventually reduce the time required to complete retirement rollovers from days to mere minutes. This improvement would likely simplify the administrative process for millions of Americans transitioning into retirement over the next decade.

The takeaway

Blockchain technology could eventually transform how retirement assets are moved across the financial system by providing higher levels of automation. Investors should monitor how regulatory bodies adapt to these new digital verification methods in the coming years.