John Hancock Retirement launches dynamic default investment feature to help participants address more complex financial needs and prepare for retirement

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May 17, 2023, 07:30 ET

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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."

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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.

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.

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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.

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.^**

** 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.

SOURCE John Hancock Retirement