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BOSTON, May 17, 2023
/PRNewswire/ - John Hancock Retirement has launched a dynamic
investment feature available to new clients converting from an
existing plan to better help their participants address more
complex financial needs and prepare for retirement.
During plan conversion, participants usually are automatically
invested in an age-appropriate target date fund (TDF) until they
decide to manage their own investments or leave them in the default
investment. With John Hancock Retirement's dynamic retirement
strategy, participants over an age set by the plan sponsor will be
transitioned automatically from the TDF to the John Hancock
Personalized Retirement Advice (Retirement Advice) managed account
program, which uses Morningstar Investment Management LLC's advice
methodology.
When participants are early in their careers, the
one-size-fits-all asset allocation of TDFs is generally sufficient
to meet their needs. But as participants advance in their careers,
their lives and financial circumstances are likely to change,
requiring a more personalized investment strategy.
"Managed account programs, such as Retirement Advice, are
designed to provide customization and adapt to a participant's
evolving financial needs and goals," said Wayne Park, CEO, John Hancock Retirement.
"Nearly 90 percent of our retirement plan participants recently
said that professional management of their retirement investments
and savings would positively impact them getting financially
prepared for retirement.1 We're pleased we can offer
this solution for those who feel it will benefit their retirement
readiness."
________________________
1 In
November 2022, John Hancock commissioned our ninth annual financial
stress and well-being survey with the research firm Edelman Public
Relations Worldwide Canada (Edelman). An online survey of 3,825
John Hancock plan participants was conducted between 11/29/22 and
12/14/22 to learn more about individual stress levels, their causes
and effects, and strategies for relief. John Hancock and Edelman
are not affiliated, and neither is responsible for the liabilities
of the other.
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John Hancock teamed up with
Morningstar Investment Management to offer Retirement Advice.
Retirement Advice is a comprehensive, professional portfolio
management program that retirement savers in John Hancock-sponsored
retirement plans can enroll in for more sophisticated portfolio
management and construction.
Retirement Advice selects funds from the plan's investment
lineup to create a portfolio for a retirement saver, monitors
market fluctuations, and makes adjustments to help ensure the
investment mix matches the participant's goals and financial
situation. Participants can personalize their investment mix
based on many factors, including age, projected years until
retirement, account balance, outside savings, and estimated Social
Security benefits.
Retirement Advice users receive ongoing professional management
of their investment mix to help keep them on track, guidance on how
much they may need to save to help them reach their goals, and
portfolio withdrawal strategy recommendations as they near
retirement. If participants have further questions, they'll have
access to a team of licensed, noncommissioned representatives who
support Retirement Advice.
Retirement Advice can be a cost-effective means of getting
professional advice, and participants have a 90-day period free of
program fees to experience it. After that, participants pay a
monthly program fee based on a tiered schedule, depending on their
account balance. If participants prefer to manage their own
investments, they can opt out of the program at any time without
penalty.
"Our goal is to help people plan and save for retirement. We've
made Retirement Advice available to all our plans and found that
participants who are enrolled in it are projected to replace an
additional 20 percent of their income come retirement,"2
said Jack Barry, head of product
development, John Hancock Retirement.
________________________
2 John
Hancock internal data as of 12/31/22 for open-architecture plans.
Participation in John Hancock Personalized Retirement Advice
(Retirement Advice) does not guarantee investment success.
Investing involves risks, including the potential loss of
principal.
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About John Hancock
Retirement
John Hancock Retirement is the U.S. retirement business of
Manulife Investment Management. For more than 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.* 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 proven results.
As of March 31, 2023, John Hancock
serviced over 56,000 retirement plans with over 3.1 million
participants and over $195 billion in
AUMA.**
* "PLANSPONSOR 2022
Defined Contribution Recordkeeping Survey© 2022 Asset
International, Inc.," PLANSPONSOR, 2022.
|
** As of Mar 31, 2023,
John Hancock Life Insurance Company (USA) supported 51,722 plans,
1,613,752 participants, and $ 93,969,824,636.02 in AUMA. John
Hancock Life Insurance Company of New York supported 2,704 plans,
77,262 participants, and $ 5,333,451,390.46 in AUMA. John
Hancock Retirement Plan Services LLC supported 1,919 plans,
1,494,059 participants, and $96,266,799,366.59 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 brand for 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 19 geographies. 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.
Not all offerings are available in all jurisdictions. For
additional information, please visit manulifeim.com.
Subject to plan availability. Participation in John Hancock
Personalized Retirement Advice (Retirement Advice) does not
guarantee investment success. Investing involves risks, including
the potential loss of principal. Fees for this service are based on
a tiered schedule and vary by account balance. For more
information, consult the Retirement Advice investment advisory
agreement. John Hancock Personal Financial Services, LLC (JHPFS),
an SEC 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 adviser 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 affiliates. JHPFS acts as a fiduciary with respect to the
management of Retirement Advice investments.
John Hancock Retirement Plan Services LLC provides
administrative and/or recordkeeping services to sponsors or
administrators of retirement plans through an open-architecture
platform. 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 NY), and John
Hancock Life Insurance Company of New
York, Valhalla, NY. Product
features and availability may differ by state. All entities do
business under certain instances using the John Hancock brand name.
Each entity makes 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 entity does not, and is not undertaking to,
provide impartial investment advice or give advice in a fiduciary
capacity. Securities are offered through John Hancock Distributors
LLC, member FINRA, SIPC.
NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED.
© 2023 John Hancock. All rights reserved.
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SOURCE John Hancock Retirement