Empower Retirement Planner & Investment Checkup: Tools Guide (2026)

Empower’s free retirement and investment tools are arguably the best in the consumer personal finance market — better than Mint had, better than Rocket Money offers, and better than what most brokers (Fidelity, Schwab, Vanguard) provide as free perks. This guide explains exactly how to use the Retirement Planner, Investment Checkup, Fee Analyzer, and 401(k) calculators, including real-world tips for getting projections that actually match your situation (not Empower’s defaults).

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

What’s in this guide

• Tools overview
• Retirement Planner
• Investment Checkup
• Fee Analyzer
• 401(k) Calculator
• Net Worth & cash flow trackers
• Tax & income forecasts
• How accurate are Empower’s projections
• Tips for accurate planning
• Limitations
• FAQ

Tools overview

All free. No premium tier required.

Retirement Planner

The flagship tool. Walks you through a comprehensive retirement projection.

Setup steps:

1. Open Empower → Planning → Retirement Planner.
2. Enter:
   • Current age.
   • Target retirement age (default 65).
   • Annual income.
   • Annual savings rate (% of income).
   • Linked accounts auto-populate balances.
3. Specify retirement goals:
   • Annual spending in retirement.
   • Healthcare costs.
   • Major one-time expenses (kids’ weddings, etc.).
4. Run the projection.

The output:

• Probability of meeting your goals (e.g., “85% chance”).
• Monte Carlo simulation — 1,000 scenarios under various market conditions.
• Year-by-year projection — see how your wealth changes through retirement.
• What-ifs — adjust contributions, retirement age, or goals to see impact.

The “Run Out of Money” alert is the practical output — Empower tells you if your current trajectory has you running out before life expectancy, and how to fix it.

Investment Checkup

Compares your actual portfolio to Empower’s recommended allocation for your age and goals.

How to use:

1. Empower → Investing → Investment Checkup.
2. Select your time horizon (years until retirement).
3. Empower shows current vs. recommended:
   • Asset class breakdown: stocks, bonds, cash, alternatives.
   • Sector exposure: technology, healthcare, financial, etc.
   • US vs International.
   • Concentration risk in single positions.
4. Suggestions for rebalancing.

The recommended allocation isn’t necessarily the best for everyone — it’s based on Empower’s models and assumes typical risk tolerance. Use it as a baseline.

Fee Analyzer

The most under-appreciated tool. Shows you what you’re actually paying in fund fees.

How it works:

1. Empower → Investing → Fee Analyzer.
2. Each linked fund’s expense ratio is pulled from Morningstar.
3. Calculated as weighted-average expense ratio across your portfolio.
4. Compared to industry benchmarks for your allocation type.
5. Annual fee drag quantified in dollars.

What you might discover:

• Your portfolio’s fees: 0.85%/year.
• Industry benchmark: 0.15%/year.
• Difference: 0.70% × portfolio = $1,750/year on $250K.

The Fee Analyzer is especially valuable for old 401(k) accounts where you may be paying high-fee Class A funds without realizing.

401(k) Calculator

Helps you model:

• Withdrawal amount + tax implications.
• Loan repayment schedule.
• Rollover destination comparisons.

Useful for one-off questions: “If I borrow $20K from my 401(k), what’s the impact?”

For broader 401(k) deep-dive, see Empower 401(k) Loan, Rollover & Withdrawal Guide.

Net Worth & cash flow trackers

Net Worth:

• Total assets − total liabilities.
• Updated in real-time.
• Trend chart over time.
• Drill-down by account.

Cash Flow:

• Monthly income vs. monthly spending.
• Categorized transactions.
• Budget setting (basic).

These are similar to what other apps offer, but Empower’s integration with investments makes the picture more complete.

Tax & income forecasts

For your retirement plan:

• Projected federal + state taxes.
• Required Minimum Distributions (RMDs) starting at age 73.
• Social Security claim strategies (limited tools).
• Roth conversion analysis.

These are more limited than dedicated tax planning software (TurboTax planning module, for example), but useful for a directional view.

How accurate are Empower’s projections

Empower’s Monte Carlo simulations use standard financial planning math, but accuracy depends on:

1. Your inputs — garbage in, garbage out. Update your data when life changes.
2. Empower’s assumptions — typical market return assumptions, inflation rates, etc. Sometimes too optimistic.
3. Linked account accuracy — Yodlee sometimes misclassifies funds.
4. External assets — Empower can’t see what you don’t link (cash under the mattress, real estate equity not in linked accounts).

For most users, Empower’s projections are within ~10% of “real” but the right tool for “Will I be OK in retirement?” not “What will my exact balance be at age 67.”

Tips for accurate planning

1. Link ALL your accounts — including external 401(k)s, real estate, and crypto if applicable.
2. Update salary annually — projections compound errors over time.
3. Update savings rate when you get raises — auto-increase your 401(k) contributions in the planner.
4. Be realistic about retirement spending — most retirees spend less than working, but not always 70% (the standard assumption).
5. Run “what-if” scenarios — see what happens if you retire 2 years later, save 1% more, etc.
6. Verify Yodlee classifications — sometimes investment accounts show as savings; correct manually.
7. Update for major life events — marriage, divorce, kids, home purchase.

Limitations

• Doesn’t include real estate equity unless you manually add property.
• Doesn’t account for HSAs distinctly — treats them as generic savings.
• State tax modeling is basic — large income earners in high-tax states (CA, NY) may want more detailed tax software.
• Assumes consistent contribution rates — doesn’t auto-adjust for windfall years.
• Limited business income modeling — for self-employed users.
• Can’t model joint household as well as Monarch can.

For complex situations, supplement with a fee-only advisor or tax professional.

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

Are Empower’s free tools really free?

Yes. No premium tier required.

Are Empower’s tools as good as a CFP?

For typical situations, yes. For complex situations (equity compensation, business sales, estate planning), a CFP adds value Empower’s tools can’t replicate.

Why does my retirement projection seem too optimistic?

Empower’s default assumptions can be optimistic on returns and inflation. Adjust manually in settings if you want a more conservative view.

Can I share my Empower projection with my spouse?

Empower has limited multi-user support. For couples, Monarch handles this better.

Will my employer’s 401(k) plan show in the planner?

Usually, via Yodlee. Some plans don’t expose data; you’d add manually.

Does Empower’s planner account for Social Security?

Yes, with default Social Security estimates based on your stated income. Verify against your actual statement at SSA.gov.

Can I export my retirement plan?

Limited. Some PDF export available. For data export, use the Empower API (advisory clients only).

How often does Empower update fund fees?

Daily, via Morningstar’s data feeds. New funds may take a few days to appear.

Will Fee Analyzer show fees in my Roth IRA?

Yes, if linked. Fees are calculated regardless of account type.

Can the planner project beyond age 100?

Default goes to age 95-100. You can adjust in settings.

Related reading:

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