Empower Fees Explained: Free Tools vs Advisory Costs (2026)

Empower’s fee structure confuses a lot of users — partly because Empower has multiple products with different pricing, and partly because the marketing message (“free dashboard!”) emphasizes only one part. This guide breaks down everything: what’s free, what’s paid, the AUM advisory fee structure, the 401(k) fees you might be paying without realizing, and how to interpret the Fee Analyzer’s findings.

For broader Empower context, see Is Empower Worth It?.

What’s in this guide

• The summary — what’s free vs paid
• Empower Dashboard (free)
• Empower Personal Wealth (paid advisory)
• The AUM fee structure explained
• What you actually get for advisory fees
• Empower 401(k) fees
• The Fee Analyzer — what it shows you
• How Empower compares on fees
• When advisory fees make sense
• When to skip advisory
• FAQ

The summary — what’s free vs paid

The free dashboard is genuinely free. The advisory is genuinely expensive. There’s no in-between freemium tier.

Empower Dashboard (free)

What’s included for $0:

• Net worth tracking across all linked accounts.
• Asset allocation analysis.
• Retirement planner.
• Investment Checkup tool.
• Fee Analyzer — calculates total fees across your portfolio.
• Cash flow tracking.
• Goal tracking.
• Educational content.

How Empower makes money on the free side: they use your data to identify candidates for paid advisory (more on this below).

Empower Personal Wealth (paid advisory)

This is the paid advisory service, available to users with $100K+ in linkable assets (sometimes $250K+ depending on tier).

What’s included:

• Personal financial advisor assigned to you.
• Investment management — Empower invests your taxable + IRA assets according to a plan.
• Tax-loss harvesting for taxable accounts.
• Holistic financial planning — retirement, estate, college, insurance.
• Quarterly reviews.
• Ongoing rebalancing.
• Custodian: Schwab (typically; sometimes Fidelity).

The fee schedule:

The AUM fee structure explained

Empower’s AUM (assets under management) fee:

• 0.89% on first $1M
• 0.79% on $1-3M
• 0.69% on $3-5M
• 0.59% on $5-10M
• 0.49% on $10M+

Examples:

The fee is deducted quarterly from your account.

Comparison points:

• Vanguard PAS: 0.30% across all asset levels.
• Schwab Intelligent: free under $5K, 0.18% above.
• Independent fee-only advisor: typically $2,000-$10,000 flat fee per year.
• Robo-advisor (Betterment): 0.25%.

Empower is among the most expensive advisory services in the major-firm category.

What you actually get for advisory fees

For the AUM fee, you get:

1. Asset allocation customized to your goals.
2. Tax-loss harvesting in taxable accounts.
3. Quarterly rebalancing automatically.
4. Advisor relationship — your designated person.
5. Comprehensive financial planning beyond just investments.
6. Tax-efficient withdrawal sequencing in retirement.
7. Ongoing access for questions.

What you DON’T necessarily get:

• Better returns than a target-date fund. Studies suggest hands-on advisors don’t reliably beat passive index funds.
• Tax-loss harvesting unique to Empower — robo-advisors do this too at lower cost.
• Estate planning legal documents — your advisor may guide but doesn’t draft.

Empower 401(k) fees

If your employer’s 401(k) is administered by Empower, you may be paying fees you don’t see directly:

• Plan administration fees — paid by your employer typically, sometimes passed to participants.
• Investment expense ratios — every fund in your 401(k) has its own expense ratio.
• Recordkeeping fees — often passed to participants.
• Investment management fees — for managed funds.

These typically total 0.5-1.5% per year on average for a 401(k), regardless of who administers it.

The Fee Analyzer can show you the total fees in your 401(k) and where they’re coming from.

The Fee Analyzer — what it shows you

The Fee Analyzer is one of Empower’s standout free tools:

1. Pull every fund in your portfolio.
2. Look up each fund’s expense ratio.
3. Calculate weighted-average total expense ratio.
4. Compare to industry benchmarks.
5. Highlight high-fee funds and suggest alternatives.

For example, the Fee Analyzer might show:

• Your portfolio’s average expense ratio: 0.85%
• Industry benchmark for similar allocation: 0.15%
• Annual fee leakage: 0.70% × portfolio value
• Top high-fee fund: “Class A Variable Annuity” at 2.5%

Many users discover they’re paying $1,000-$5,000+ extra per year in fees they didn’t know existed.

How Empower compares on fees

For pure investment management, Vanguard PAS or Schwab Intelligent are dramatically cheaper. Empower’s edge is comprehensive planning.

When advisory fees make sense

Pay Empower’s advisory fees if:

• $500K+ portfolio — fees offset by tax savings + planning value.
• Complex situation — equity compensation, multiple accounts, tax-sensitive.
• You don’t want to DIY — value the human relationship.
• You’d otherwise hire a fee-only advisor at $5K/year — Empower is similar value at maybe higher cost.

When to skip advisory

Skip Empower’s paid advisory if:

• <$200K portfolio — fees outweigh benefit.
• You’re comfortable with target-date funds or robo-advisors.
• You’re already getting financial advice elsewhere (your CPA, employer’s 401(k) advisor).
• You’re cost-conscious — Vanguard PAS at 0.30% gives 80% of the value at 1/3 the cost.
• You can DIY with index funds — that’s perhaps the most tax-efficient option.

Track every account in one free dashboard Empower’s free Personal Dashboard tracks net worth, retirement readiness, and fees across your bank, brokerage, and 401(k) accounts. Try Empower Free →

FAQ

Is Empower’s free dashboard really free?

Yes. No premium tier. They make money via paid advisory upsells.

Will Empower keep calling me to pitch advisory?

After 1-2 sales calls, polite “no thanks” usually stops them. They mostly target larger portfolios.

How does Empower’s 0.89% compare to industry average?

Industry average for full-service advisors is 0.50-1.50% AUM. Empower is in the upper-middle of that range.

Can I negotiate Empower’s advisory fee?

Limited. Larger accounts ($5M+) sometimes negotiate; smaller accounts get standard rates.

Are there account minimums for advisory?

Yes — typically $100K-$250K minimum. Below that, robo-advisor or DIY.

Will Empower charge for the dashboard later?

No public plans. Empower’s revenue model relies on advisory upsells.

How does Empower handle taxes on advisory accounts?

Tax-loss harvesting in taxable accounts. Tax-efficient withdrawal sequencing in retirement planning.

What if I cancel mid-year?

Empower refunds the unused portion of the current billing period.

Are 401(k) plan fees negotiable?

By you individually — no. By your employer — yes, when negotiating with Empower as administrator.

Will Fee Analyzer show fees in funds I don’t own?

It shows fees on funds you own. It doesn’t pre-screen funds you might want to buy (use Morningstar for that).

Related reading:

• Is Empower (Personal Capital) Worth It?
• Empower vs Fidelity vs Vanguard vs Schwab
• Empower Retirement Planner Guide
• Empower 401(k) Loan, Rollover & Withdrawal
• How to Cancel Empower or Delete Account
• Empower vs Mint vs Rocket Money vs Monarch