Updated 2026-03-30
Schwab vs Empower 401(k) Comparison
Compare Charles Schwab (#3, 9.1/10) and Empower Retirement (#4, 8.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Schwab | Empower |
|---|---|---|
| Overall Score | 9.1/10 | 8.7/10 |
| Rank | #3 | #4 |
| AUM | $8.5 trillion | $1.4 trillion |
| Participants | 28 million | 18 million |
| Plan Sponsors | 3,200+ | 71,000+ |
| Founded | 1971 | 2014 |
Ratings Comparison
| Category | Schwab | Empower |
|---|---|---|
| Fees & Costs | 4.5/5 | 4.3/5 |
| Investment Options | 4.7/5 | 4.2/5 |
| Customer Service | 4.7/5 | 4.3/5 |
| Mobile App | 4.5/5 | 3.8/5 |
Fee Comparison
| Fee Type | Schwab | Empower |
|---|---|---|
| Admin Fees | $0 - varies by plan | Varies by plan size |
| Expense Ratios | 0.03% - 0.80% | 0.03% - 1.0% |
| Trading Fees | $0 for stocks/ETFs | Plan dependent |
| Advisory Fees | 0% - 0.80% | 0.25% - 0.89% |
Schwab Strengths
- Excellent customer service with 24/7 support
- complete research and education tools
- Schwab Intelligent Portfolios (free robo-advisor)
- Strong integration after TD Ameritrade merger
Empower Strengths
- Strong participant education programs
- Excellent plan sponsor tools
- Competitive institutional pricing
- Personal Capital integration for all-in-one planning
Rollover, Loans & Withdrawals
| Feature | Schwab | Empower |
|---|---|---|
| Rollover Platform | Schwab.com | Empower.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Schwab.com, Phone (800-724-7526), Schwab branch offices | Online via Empower.com, Phone (800-338-4015) |
| Distribution Options | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA |
Which Should You Choose?
Choose Schwab if you want:
- Full-service seekers
- Active traders
- Those wanting local branches
- TD Ameritrade users
Choose Empower if you want:
- Mid to large employers
- Those valuing education
- Managed account seekers
- Income-focused retirees
Our Verdict: Schwab vs Empower
Charles Schwab wins this comparison with a score of 9.1/10 vs 8.7/10. Schwab excels with excellent customer service with 24/7 support, 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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Schwab vs Empower: Complete 401(k) Comparison for 2026
Choosing between Charles Schwab and Empower Retirement for your 401(k) is an important decision that affects your retirement savings. Schwab offers full service while Empower is known for 2nd largest. In terms of fees, Schwab charges 0.03% - 0.80% expense ratios compared to Empower's 0.03% - 1.0%. Schwab manages $8.5 trillion in assets and serves 28 million participants, while Empower has $1.4 trillion AUM and 18 million participants.
Key Differences: Schwab vs Empower
When comparing Schwab and Empower, consider their core strengths: Schwab excels with excellent customer service with 24/7 support, while Empower stands out for strong participant education programs. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Schwab's customer service rating is 4.7/5 compared to Empower's 4.3/5. For mobile experience, Schwab scores 4.5/5 while Empower scores 3.8/5.
Which Provider is Right for You?
Choose Schwab if you prioritize full-service seekers. Choose Empower if you're looking for mid to large employers. 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 Schwab and Empower provider pages.
Frequently Asked Questions
Charles Schwab scores higher in our 2026 rankings with 9.1/10. Schwab is best for full-service seekers, while Empower is best for mid to large employers. The right choice depends on your employer's plan and your priorities.
Schwab charges expense ratios of 0.03% - 0.80% with admin fees of $0 - varies by plan. Empower charges 0.03% - 1.0% expense ratios with admin fees of Varies by plan size. Schwab's fees rating is 4.5/5 compared to Empower's 4.3/5.
Yes, you can roll over between Schwab and Empower. Schwab uses Schwab.com for rollovers, while Empower uses Empower.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Schwab offers 401(k) loans. Empower offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Schwab scores 4.7/5 for investment options, while Empower scores 4.2/5. Both offer target-date funds, index funds, and managed accounts. Schwab's investment options include Index Funds, Target Date Funds, Mutual Funds. Empower offers Index Funds, Target Date Funds, Mutual Funds.
For small businesses, consider plan minimums and per-participant costs. Schwab is best for full-service seekers, active traders, those wanting local branches, td ameritrade users. Empower is best for mid to large employers, those valuing education, managed account seekers, income-focused retirees. Compare admin fees: Schwab charges $0 - varies by plan vs Empower's Varies by plan size.
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