Updated 2026-03-20
Empower vs Betterment 401(k) Comparison
Compare Empower Retirement (#4, 8.7/10) and Betterment at Work (#20, 6.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Empower | Betterment |
|---|---|---|
| Overall Score | 8.7/10 | 6.7/10 |
| Rank | #4 | #20 |
| AUM | $1.4 trillion | $45 billion |
| Participants | 18 million | 400,000 |
| Plan Sponsors | 71,000+ | 1,500+ |
| Founded | 2014 | 2010 |
Ratings Comparison
| Category | Empower | Betterment |
|---|---|---|
| Fees & Costs | 4.3/5 | 4.0/5 |
| Investment Options | 4.2/5 | 3.2/5 |
| Customer Service | 4.3/5 | 4.0/5 |
| Mobile App | 3.8/5 | 4.4/5 |
Fee Comparison
| Fee Type | Empower | Betterment |
|---|---|---|
| Admin Fees | Varies by plan size | $150/month + $6/employee |
| Expense Ratios | 0.03% - 1.0% | 0.03% - 0.15% |
| Trading Fees | Plan dependent | $0 |
| Advisory Fees | 0.25% - 0.89% | Included in platform fee |
Empower Strengths
- Strong participant education programs
- Excellent plan sponsor tools
- Competitive institutional pricing
- Personal Capital integration for all-in-one planning
Betterment Strengths
- Fully automated portfolio management
- Tax-loss harvesting and tax-smart strategies
- Clean, modern user interface
- Low-cost ETF portfolios
Rollover, Loans & Withdrawals
| Feature | Empower | Betterment |
|---|---|---|
| Rollover Platform | Empower.com | Betterment App |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via Empower.com, Phone (800-338-4015) | Online via Betterment app, Email support |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Empower if you want:
- Mid to large employers
- Those valuing education
- Managed account seekers
- Income-focused retirees
Choose Betterment if you want:
- Tech companies
- Startups
- Hands-off investors
- ESG-conscious employers
Our Verdict: Empower vs Betterment
Empower Retirement wins this comparison with a score of 8.7/10 vs 6.7/10. Empower excels with strong participant education programs, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Empower vs Betterment: Complete 401(k) Comparison for 2026
Choosing between Empower Retirement and Betterment at Work for your 401(k) is an important decision that affects your retirement savings. Empower offers 2nd largest while Betterment is known for robo-advisor. In terms of fees, Empower charges 0.03% - 1.0% expense ratios compared to Betterment's 0.03% - 0.15%. Empower manages $1.4 trillion in assets and serves 18 million participants, while Betterment has $45 billion AUM and 400,000 participants.
Key Differences: Empower vs Betterment
When comparing Empower and Betterment, consider their core strengths: Empower excels with strong participant education programs, while Betterment stands out for fully automated portfolio management. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Empower's customer service rating is 4.3/5 compared to Betterment's 4.0/5. For mobile experience, Empower scores 3.8/5 while Betterment scores 4.4/5.
Which Provider is Right for You?
Choose Empower if you prioritize mid to large employers. Choose Betterment if you're looking for tech companies. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Empower and Betterment provider pages.
Frequently Asked Questions
Empower Retirement scores higher in our 2026 rankings with 8.7/10. Empower is best for mid to large employers, while Betterment is best for tech companies. The right choice depends on your employer's plan and your priorities.
Empower charges expense ratios of 0.03% - 1.0% with admin fees of Varies by plan size. Betterment charges 0.03% - 0.15% expense ratios with admin fees of $150/month + $6/employee. Empower's fees rating is 4.3/5 compared to Betterment's 4.0/5.
Yes, you can roll over between Empower and Betterment. Empower uses Empower.com for rollovers, while Betterment uses Betterment App. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Empower offers 401(k) loans. Betterment does not offer 401(k) loans.
Empower scores 4.2/5 for investment options, while Betterment scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Empower's investment options include Index Funds, Target Date Funds, Mutual Funds. Betterment offers ETF Portfolios, Target Date Portfolios, Socially Responsible Portfolios.
For small businesses, consider plan minimums and per-participant costs. Empower is best for mid to large employers, those valuing education, managed account seekers, income-focused retirees. Betterment is best for tech companies, startups, hands-off investors, esg-conscious employers. Compare admin fees: Empower charges Varies by plan size vs Betterment's $150/month + $6/employee.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-20