Updated 2026-03-30
Empower vs Principal 401(k) Comparison
Compare Empower Retirement (#4, 8.7/10) and Principal Financial (#6, 8.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Empower | Principal |
|---|---|---|
| Overall Score | 8.7/10 | 8.3/10 |
| Rank | #4 | #6 |
| AUM | $1.4 trillion | $700 billion |
| Participants | 18 million | 6 million |
| Plan Sponsors | 71,000+ | 46,000+ |
| Founded | 2014 | 1879 |
Ratings Comparison
| Category | Empower | Principal |
|---|---|---|
| Fees & Costs | 4.3/5 | 3.5/5 |
| Investment Options | 4.2/5 | 3.8/5 |
| Customer Service | 4.3/5 | 4.2/5 |
| Mobile App | 3.8/5 | 3.9/5 |
Fee Comparison
| Fee Type | Empower | Principal |
|---|---|---|
| Admin Fees | Varies by plan size | $1,500 - $5,000/year for small plans |
| Expense Ratios | 0.03% - 1.0% | 0.25% - 1.5% |
| Trading Fees | Plan dependent | Varies |
| Advisory Fees | 0.25% - 0.89% | 0.40% - 1.0% |
Empower Strengths
- Strong participant education programs
- Excellent plan sponsor tools
- Competitive institutional pricing
- Personal Capital integration for all-in-one planning
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Rollover, Loans & Withdrawals
| Feature | Empower | Principal |
|---|---|---|
| Rollover Platform | Empower.com | Principal.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Empower.com, Phone (800-338-4015) | Online via Principal.com, Phone (800-547-7754) |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA |
Which Should You Choose?
Choose Empower if you want:
- Mid to large employers
- Those valuing education
- Managed account seekers
- Income-focused retirees
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Our Verdict: Empower vs Principal
Empower Retirement wins this comparison with a score of 8.7/10 vs 8.3/10. 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 Principal: Complete 401(k) Comparison for 2026
Choosing between Empower Retirement and Principal Financial for your 401(k) is an important decision that affects your retirement savings. Empower offers 2nd largest while Principal is known for small business focus. In terms of fees, Empower charges 0.03% - 1.0% expense ratios compared to Principal's 0.25% - 1.5%. Empower manages $1.4 trillion in assets and serves 18 million participants, while Principal has $700 billion AUM and 6 million participants.
Key Differences: Empower vs Principal
When comparing Empower and Principal, consider their core strengths: Empower excels with strong participant education programs, while Principal stands out for excellent for small business 401(k) plans. 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 Principal's 4.2/5. For mobile experience, Empower scores 3.8/5 while Principal scores 3.9/5.
Which Provider is Right for You?
Choose Empower if you prioritize mid to large employers. Choose Principal if you're looking for small businesses. 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 Principal 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 Principal is best for small businesses. 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. Principal charges 0.25% - 1.5% expense ratios with admin fees of $1,500 - $5,000/year for small plans. Empower's fees rating is 4.3/5 compared to Principal's 3.5/5.
Yes, you can roll over between Empower and Principal. Empower uses Empower.com for rollovers, while Principal uses Principal.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Empower offers 401(k) loans. Principal offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Empower scores 4.2/5 for investment options, while Principal scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. Empower's investment options include Index Funds, Target Date Funds, Mutual Funds. Principal offers Mutual Funds, Target Date Funds, Stable Value.
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. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Compare admin fees: Empower charges Varies by plan size vs Principal's $1,500 - $5,000/year for small plans.
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: 2026-03-30