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

Sponsored financial news

Featured video

INTV

When can advisers expect an SEC fiduciary rule proposal and other regs this year?

Managing editor Christina Nelson and senior reporter Mark Schoeff Jr. discuss regulations of consequence to financial advisers in 2018, and their likely timing.

Recommended Video

Path to growth

Latest news & opinion

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

State measures to prevent elder financial abuse gaining steam

A growing number of states are looking to pass rules preventing exploitation of seniors.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print