Empower Posts Record Margins in Third Quarter

Both the wealth management and retirement units reported their highest pre-tax base operating margins on record in Q3 2026.

Updated on Nov. 5, 2026 in Financial Planning

Empower Posts Record Margins in Third Quarter

Empower's wealth management unit posted a 42.0% pre-tax base operating margin in Q3 2026, up 410 basis points year over year, while its retirement unit reported 35.6%, up 370 basis points. Both figures are records for the company.

Why it matters

The results show Empower's wealth and retirement businesses expanding profitability at the same time, with management attributing stronger inflows to rollover sales following completed business transformation initiatives. For Colorado, where Empower is headquartered in Greenwood Village, the quarter reflects the financial health of a major employer in the state's financial services sector.

Wealth unit pre-tax base operating margin reached 42.0% in Q3 2026, up 410 basis points from a year earlier, and retirement unit margin reached 35.6%, up 370 basis points. The company has not indicated how long the margin gains will hold.

The players

Empower

Empower is a Greenwood Village, Colorado-based retirement and wealth management company and a subsidiary of Great-West Lifeco.

Great-West Lifeco

Great-West Lifeco is a Toronto-listed financial services holding company whose US segment includes Empower.

The details

Empower reported $2.5 billion in net inflows into Empower Personal Wealth and $1.2 billion in net retirement plan inflows for the quarter. Stronger equity markets lifted assets under administration, and management credited rollover sales that followed completed business transformation initiatives.

June 2026: Empower announced its deal to acquire Milliman's retirement plan and benefits administration business.
September 2026: Empower completed the Milliman retirement acquisition, adding about $130 billion in client assets and 1.5 million plan participants.
Q3 2026: Record margins and $2.5 billion in wealth inflows were reported.
September 30, 2026: Total client assets across the Great-West group reached CA$3.9 trillion.

Market Dynamics

The quarter's margin gains came as Empower folded in Milliman's retirement administration business, which added roughly $130 billion in client assets and 1.5 million plan participants. The combined scale positions Empower to compete more directly for large retirement plan sponsors.

For investors holding Great-West Lifeco or retirement plans administered by Empower, the quarter's record margins signal stronger profitability in those businesses. Account holders should review their own retirement plan statements and asset allocations rather than rely on corporate earnings alone.

The takeaway

Strong margins and inflows show the wealth and retirement sides of Empower growing together after the Milliman deal. Readers managing their own retirement savings can compare fees and allocations across providers before making changes.