Empower Continues 2020 Acquisitions With Fifth Third Deal

The Fifth Third retirement plan business comprises more than 475 workplace savings plans populated by approximately 100,000 participants with $6.21 billion in assets.

Empower Retirement this morning announced the acquisition of a sizable portion of the retirement plans business of Fifth Third Bank.

The announcement comes less than a month after Empower revealed its acquisition of the MassMutual retirement business. Together, the MassMutual and Fifth Third acquisitions solidify Empower’s position as the second-largest U.S. retirement plan recordkeeper by assets. While it has grown significantly this year, Empower now has about a quarter of the total retirement plan assets of Fidelity, which remains by far the largest provider in this space.

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According to acquisition details released by Empower, the deal will bring about the transfer of 476 retirement plans to its recordkeeping system. The plans are populated by approximately 100,000 participants with $6.21 billion in assets. Fifth Third will continue to serve this group in a “plan-level investment advisory capacity,” driven by a “continued focus on providing independent fiduciary advisory services,” according to the firms.

According to the parties, Fifth Third’s retirement plan business for its institutional clients will now focus on its core strength of providing independent fiduciary advisory services and comprehensive investment solutions. The firms say Fifth Third will continue to “proactively deliver value added advice and solutions for its clients.”

The transaction is expected to close in the fourth quarter of this year. The terms of the agreement were not disclosed, but, at the close of the deal, Fifth Third will continue to manage $4.2 billion in plan assets.

Empower’s leaders say the ongoing relationship with Fifth Third will leverage both firms’ core expertise to the benefit of retirement plan participants and their employers. Notably, Empower currently provides recordkeeping services for Fifth Third’s retirement business through its private-label retirement plan unit, Empower Institutional. Because of this existing relationship, the Fifth Third plans will not require conversions.

Edmund F. Murphy III, Empower Retirement president and CEO, calls the deal “an exciting evolution of the existing 16-year relationship between Empower and Fifth Third.”

“With the addition of these plans to Empower’s platform, we will continue to expand our capabilities for these savers, enhance our financial wellness and advice offerings and accelerate our value creation for all our stakeholders,” Murphy says.

“The transition to Empower Retirement underscores Fifth Third’s clear commitment to creating value for our clients by keeping them at the center of all we do,” adds Kristine Garrett, executive vice president and head of wealth and asset management for Fifth Third. “It is our collective goal to ensure our clients receive the same high standard of service they expect, while gaining the technological excellence and deep product capabilities offered by Empower.”

In addition to the MassMutual deal and its other merger and acquisition (M&A) activity, Empower earlier this year acquired Personal Capital, a registered investment adviser (RIA) and wealth manager. Empower says this deal will help create the capability to offer participants a singular view of their entire financial picture, centered on the retirement planning discussion.

New Voya Video Platform Offers 24/7 Access to Financial Education

The new tool comes at a time where more American workers are looking to technology as a resource for financial information and guidance.   

The retirement business of Voya Financial Inc. has introduced Voya Learn, which is designed to provide 24/7 access to financial education.

The platform offers both live and on-demand financial education sessions covering financial wellness and retirement topics such as emergency savings, investing concepts and market volatility.

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“When it comes to retirement planning, we recognize that individuals want and need flexibility in when, where and how they access educational resources, and that’s even more true in today’s virtual environment,” says Charlie Nelson, CEO of retirement and employee benefits for Voya Financial. “At Voya, we believe that in order to improve financial outcomes, it’s essential to drive change in behaviors and action. Voya Learn not only provides a great opportunity to provide individuals with financial education through an engaging experience, but it also offers tremendous flexibility for people to take actions right away to ultimately become better prepared for retirement. What’s more, data from our own retirement plan participants shows that those who engage with their retirement plan through the website or mobile app are saving 47% more than those who do not engage digitally.”

Voya Learn comes at a time when many Americans are turning to technology as a resource for financial information and guidance as a result of the COVID-19 pandemic. According to research from Voya, more than half (55%) of individuals believe technology will have the greatest impact on how they spend (28%) and make money (27%) in the next five years, while more than a third (34%) believe it will have an impact on how they save or invest.

Led by Voya employees, Voya Learn videos and content are available through live or on-demand sessions. Live sessions include topics on saving, investing in an employer’s plan, budgeting, investing basics and retirement income planning. Voya notes there are multiple days and times open to register for a live session.

On-demand sessions are available at any time. These sessions include a curriculum of retirement planning and financial wellness educational content, such as how to build an emergency fund, manage debt and protect savings.

All videos are also available in Spanish and have closed captioning. More information on the educational feature can be found on Voya.com/voyalearn.

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