John Hancock picks robo for retirement accounts

NextCapital's digital platform to serve 401(k)s and rollovers for the firm

Jan 10, 2017 @ 12:01 am

By Liz Skinner

John Hancock Retirement Plan Services will integrate NextCapital's digital 401(k) platform and begin offering its automated retirement plans and IRA rollovers over the next 12 months.

NextCapital's robo-platform allows retirement plan participants to have portfolio tracking, planning, savings advice and portfolio management online. The financial advice will be automated, but live help will be available to service the accounts, said Peter Gordon, chief executive of John Hancock Retirement Plan Services, which is part of John Hancock Financial, a division of Manulife Financial Corp.

“Plan sponsors have been more and more interested in providing meaningful advice, and the technology has gotten better to do it,” he said.

Details on pricing for the automated accounts haven't been set yet, but it will be “nonconflicted and cost-effective,” Mr. Gordon said.

New Labor Department rules that take effect in three months require all retirement advice to be provided in the best interest of clients. Robo-advisers are expected to play a role in helping many firms provide retirement recommendations under these new rules.

(More: The most up to date information on the DOL fiduciary rule)

“Digital advice is strategically key for firms seeking to scalably implement the new DOL fiduciary rule requirements,” said Alois Pirker, research director at Aite Group.

John Hancock Retirement Plan Services, which has about $144 billion in assets under management, already offers plan sponsors some access to digital accounts through a partnership with Morningstar, Mr. Gordon said.

Companies will be able to choose between either provider for digital accounts, or neither, he said.

This deal is the first time a company is using NextCapital's technology to provide 401(k) and rollover accounts on the same platform, said Rob Foregger, co-founder of NextCapital.

NextCapital previously announced deals with State Street Global Advisors, Russell Investments and Transamerica.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Identifying unconventional risk and finding a secret weapon in client portfolios

Advisers are hungry to find new alternative investment opportunities. But Rupal Bhansali of Ariel Investments says the secret weapon could be right under your nose - in cash.

Latest news & opinion

Raymond James executives call on industry to keep broker protocol

Also ask firms to pay for the administration of the protocol to 'ensure its longevity and relevance.'

Senate committee approves tax plan but full passage not assured

Several Republican senators expressed reservations about the bill, and the GOP cannot afford too many defections.

House passes tax bill, focus turns to Senate

Tax reform legislation expected to have more of a challenge in upper chamber.

SEC enforcement of advisers drops in Trump era

The agency pursued 82 cases against advisers and firms in fiscal year 2017, down from 98 the previous year.

PIABA accuses Finra of conflicts of interest

Public Investors Arbitration Bar Association report slams self-regulator over its picks for board of governors.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print