John Hancock picks robo for retirement accounts

NextCapital's digital platform to serve 401(k)s and rollovers for the firm.
JAN 10, 2017
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.

Latest News

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.