John Hancock Retirement expands advice program to all 401k plans

Rhea-AI Summary

On April 15, 2021, John Hancock Retirement announced the expansion of its Personalized Retirement Advice program to include all defined contribution plans, particularly targeting over 45,000 401(k) plans. This initiative aims to provide personalized advice and investment management to participants, integrating tools for income projections and asset allocation. The decision is backed by findings that 87% of workers feel more prepared for retirement when their savings are professionally managed. As of December 31, 2020, John Hancock serviced over 51,000 retirement plans with assets exceeding $205 billion.

Positive

• Expansion of the Personalized Retirement Advice program to all defined contribution plans, enhancing accessibility for over 45,000 401(k) plans.
• Integration of personalized recommendations and income projections into the online experience for better participant engagement.
• High demand for professional retirement management, with 87% of surveyed workers expressing increased preparedness with managed savings.

Negative

• None.

TSX/NYSE/PSE: MFC     SEHK: 945

BOSTON, MA, April 15, 2021 /PRNewswire/ - John Hancock Retirement announced today it is expanding its Personalized Retirement Advice (Retirement Advice) program to include all defined contribution plans. Retirement Advice is fully integrated into John Hancock's online experience for all eligible participants, connecting a participant's accounts with the program to deliver personalized advice.

"In the most recent John Hancock Financial Stress survey, 87% of workers say that having their retirement savings professionally managed would have a significant impact on how prepared they feel for retirement," said Lynda Abend, chief data officer, John Hancock Retirement. "As 2020 was one of the most challenging years most people will experience, the expanded and enhanced Retirement Advice program is not only timely but a great solution for participants who want help in making the most of their retirement savings and the peace of mind that comes with partnering with a professional."

Understanding more investors are interested in receiving advice for their retirement plan, John Hancock will now be extending this benefit to all 401k participants and making it available to over 45,000 plans. 

In addition to making Retirement Advice available to all their 401k plans, John Hancock is also launching a new online experience to deliver personalized recommendations to all eligible participants. Integrated into the plan website, it delivers personalized income projections and recommendations to help participants to see where their savings stand today — and where it could be in the future — with professional management. Participants can also view recommended risk levels and asset allocations prior to signing up for the program.

Retirement Advice is designed to help individuals looking for ongoing professional management of their retirement savings account, and helps investors get and stay on track for a more secure retirement. Using Morningstar Investment Management LLC's independent analysis, Retirement Advice creates a customized mix of investments from the retirement plan's fund lineup. This mix is personalized based on unique factors such as age, current savings, estimated Social Security benefits, and out-of-plan assets, including those of a spouse or domestic partner, if added.

"Retirement Advice gives participants a personalized and comprehensive strategy for their savings and investment needs," added Jack Barry, head of product development and strategy, John Hancock Retirement. "We are excited to bring this great experience to our participants and enable more of them than ever to get the support they are looking for to help make the most of their retirement savings." 

About John Hancock Retirement 
John Hancock Retirement is the U.S. retirement business of Manulife Investment Management. For nearly 50 years, we've helped people plan and invest for retirement; today, we're one of the largest full-service providers in the United States.¹ We take a hands-on consultative approach based on the idea that no two plans - and no two plan participants - are exactly alike. We partner with plan sponsors, advisors, and third-party administrators to ensure that every plan is personal to the participant and delivers results.

As of December 31, 2020, John Hancock serviced over 51,000 retirement plans with over 3 million participants and over $205 billion in AUMA.²

1 "2020 Defined Contribution Recordkeeper Survey," PLANSPONSOR, 2020. 2 As of December 31, 2020, John Hancock Life Insurance Company (USA) supported 46,973 plans, 1,566,094 participants, and $102,310,069,468.17 in AUMA. John Hancock Life Insurance Company of New York supported 2,513 plans, 77,833 participants, and $6,052,455,987.28 in AUMA. John Hancock Retirement Plan Services, LLC supported 2,128 plans, 1,393,244 participants, and $97,020,284,307.76 in AUMA. Participant Counts reflect all active participants with a balance. Approximate unaudited figures for John Hancock, provided on a U.S. statutory basis.

About Manulife Investment Management 

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We're committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement.  

As of December 31, 2020, Manulife Investment Management had CAD$966 billion (US$758 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com. 

In July 2020, John Hancock commissioned our seventh annual financial stress survey with the respected research firm Greenwald & Associates. An online survey of 589 workers was conducted between 7/28/20 and 8/14/20 to learn more about individual stress levels, their causes and effects, and strategies for relief. John Hancock and Greenwald & Associates are not affiliated, and neither is responsible for the liabilities of the other.

Once enrolled in the John Hancock Personalized Retirement Advice Program (Retirement Advice), John Hancock Personal Financial Services, LLC (JHPFS) will manage a participant's account by allocating and rebalancing their investments.

Participation in John Hancock Personalized Retirement Advice (Retirement Advice) does not guarantee investment success. All investing involves risk, including possible loss of principal. Fees for this service are based on a tiered schedule and vary by account balance. For more information, consult the John Hancock Personalized Retirement Advice Investment Advisory Agreement. John Hancock Personal Financial Services, LLC ("JHPFS"), a registered investment adviser and affiliate of John Hancock Retirement Plan Services, LLC ("JHRPS"), is the investment manager of the Retirement Advice program. JHPFS has selected Morningstar Investment Management LLC, a registered investment advisor and wholly-owned subsidiary of Morningstar, Inc., to act as the "independent financial expert" (as defined in the U.S. Department of Labor's Advisory Opinion 2001-09A) for Retirement Advice. JHPFS monitors Morningstar Investment Management's performance. Morningstar Investment Management LLC is not affiliated with JHRPS, JHPFS or its affiliates.  JHPFS acts as a fiduciary with respect to the management of Retirement Advice investments.

John Hancock Retirement Plan Services, LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans.  John Hancock Trust Company LLC provides trust and custodial services to such plans.

Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York.  Product features and availability may differ by state.

John Hancock Retirement Plan Services, LLC, John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York each make available a platform of investment alternatives to sponsors or administrators of retirement plans without regard to the individualized needs of any plan.  Unless otherwise specifically stated in writing, each such company does not, and is not undertaking to, provide impartial investment advice or give advice in a fiduciary capacity.

Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock Retirement Plan Services name.

John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker dealer for the John Hancock mutual funds. Member FINRA, SIPC.

John Hancock Retirement Plan Services LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans.  John Hancock Trust Company LLC provides trust and custodial services to such plans.  Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York.  Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.

NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED.

© 2021 John Hancock. All rights reserved.

MGR0412211595773

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SOURCE John Hancock Retirement

FAQ

What is the recent development with MFC's John Hancock Retirement program?

John Hancock Retirement is expanding its Personalized Retirement Advice program to all defined contribution plans, including over 45,000 401(k) plans.

When was the John Hancock Retirement program expansion announced?

The expansion was announced on April 15, 2021.

How much does John Hancock Retirement manage in assets?

As of December 31, 2020, John Hancock Retirement managed over $205 billion in assets.

What percentage of workers believe professional management impacts retirement preparedness?

According to a recent survey, 87% of workers believe that professional management would significantly impact their retirement preparedness.

What features does the Personalized Retirement Advice program offer?

The program offers personalized income projections, recommendations, and helps allocate investments based on individual circumstances.