Updated 2026-03-30
Vanguard vs Empower 401(k) Comparison
Compare Vanguard (#2, 9.3/10) and Empower Retirement (#4, 8.7/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Vanguard | Empower |
|---|---|---|
| Overall Score | 9.3/10 | 8.7/10 |
| Rank | #2 | #4 |
| AUM | $8.6 trillion | $1.4 trillion |
| Participants | 32 million | 18 million |
| Plan Sponsors | 5,600+ | 71,000+ |
| Founded | 1975 | 2014 |
Ratings Comparison
| Category | Vanguard | Empower |
|---|---|---|
| Fees & Costs | 5.0/5 | 4.3/5 |
| Investment Options | 4.5/5 | 4.2/5 |
| Customer Service | 4.2/5 | 4.3/5 |
| Mobile App | 4.0/5 | 3.8/5 |
Fee Comparison
| Fee Type | Vanguard | Empower |
|---|---|---|
| Admin Fees | $0 - $60/year | Varies by plan size |
| Expense Ratios | 0.03% - 0.50% | 0.03% - 1.0% |
| Trading Fees | $0 for Vanguard funds | Plan dependent |
| Advisory Fees | 0.30% | 0.25% - 0.89% |
Vanguard Strengths
- Lowest expense ratios in the industry
- Investor-owned structure aligns interests
- Excellent target-date fund lineup (VTIVX series)
- Admiral Shares offer even lower costs at $3,000 minimum
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 | Vanguard | Empower |
|---|---|---|
| Rollover Platform | Vanguard.com | Empower.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Vanguard.com, Phone (800-523-1188) | 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 Vanguard if you want:
- Buy-and-hold investors
- Cost-minimizers
- Index fund believers
- Long-term planners
Choose Empower if you want:
- Mid to large employers
- Those valuing education
- Managed account seekers
- Income-focused retirees
Our Verdict: Vanguard vs Empower
Vanguard wins this comparison with a score of 9.3/10 vs 8.7/10. Vanguard excels with lowest expense ratios in the industry, 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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Vanguard vs Empower: Complete 401(k) Comparison for 2026
Choosing between Vanguard and Empower Retirement for your 401(k) is an important decision that affects your retirement savings. Vanguard offers lowest costs while Empower is known for 2nd largest. In terms of fees, Vanguard charges 0.03% - 0.50% expense ratios compared to Empower's 0.03% - 1.0%. Vanguard manages $8.6 trillion in assets and serves 32 million participants, while Empower has $1.4 trillion AUM and 18 million participants.
Key Differences: Vanguard vs Empower
When comparing Vanguard and Empower, consider their core strengths: Vanguard excels with lowest expense ratios in the industry, 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. Vanguard's customer service rating is 4.2/5 compared to Empower's 4.3/5. For mobile experience, Vanguard scores 4.0/5 while Empower scores 3.8/5.
Which Provider is Right for You?
Choose Vanguard if you prioritize buy-and-hold investors. 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 Vanguard and Empower provider pages.
Frequently Asked Questions
Vanguard scores higher in our 2026 rankings with 9.3/10. Vanguard is best for buy-and-hold investors, while Empower is best for mid to large employers. The right choice depends on your employer's plan and your priorities.
Vanguard charges expense ratios of 0.03% - 0.50% with admin fees of $0 - $60/year. Empower charges 0.03% - 1.0% expense ratios with admin fees of Varies by plan size. Vanguard's fees rating is 5.0/5 compared to Empower's 4.3/5.
Yes, you can roll over between Vanguard and Empower. Vanguard uses Vanguard.com for rollovers, while Empower uses Empower.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Vanguard 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.
Vanguard scores 4.5/5 for investment options, while Empower scores 4.2/5. Both offer target-date funds, index funds, and managed accounts. Vanguard'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. Vanguard is best for buy-and-hold investors, cost-minimizers, index fund believers, long-term planners. Empower is best for mid to large employers, those valuing education, managed account seekers, income-focused retirees. Compare admin fees: Vanguard charges $0 - $60/year 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