As a “head’s up” for 401k advisors looking to keep up with the latest technology intended to make saving in company-sponsored defined contribution plans easier for plan participants, here’s the skinny on a couple of brand-new introductions from recordkeepers.
One is a personalized Alexa skill from John Hancock that plan participants can set up and use to access personalized information including frequently asked account queries. The other is called a “Personalized Retirement Account” solution for plan participants, described as a big “easy button” to help them invest and provide a clearer picture of how they are tracking to meet their retirement income goals.
Read on for the details…
John Hancock Adds Alexa Skills for Retirement Plan Participants
John Hancock Retirement Plan Services is enhancing its participant experience by providing its open architecture retirement plan participants access to personalized information including frequently asked account queries through their Alexa-enabled devices.
Now, by saying, “Alexa, open John Hancock,” and providing a secure and personalized voice code, participants can hear their account and loan balances, fund allocations, personal rates of return, contact information for the plan, and more. Participants whose Alexa-enabled devices have a built-in display capability, such as the Echo Show, will also see the information displayed on screen.
“Our goal is to make it easier for people in our plans to save more for retirement, and to do that we want to provide the personal information they need in the ways they want to receive it,” said Patrick Murphy, president and CEO of John Hancock Retirement Plan Services. “With the growth in voice-enabled technology, we’re pleased to offer services which provide quick, secure access to important account information.”
The company says it is incorporating a variety of data protection and safety measures to address potential issues into its skills for Alexa, which were rolled out on April 11. For example, a participant’s identity will be verified through multi-factor authentication during the account linking process.
In addition, participants will be required to set up a secure voice code when first enabling the skill in the Alexa app, and recite it correctly before getting access to any account information. No participant account information is recorded or maintained on their Alexa-enabled device or in the hardware servers storing their Amazon account.
“Technology evolves so quickly and whether or not Alexa becomes the method of choice for participants to securely obtain account information, it is a valuable tool for learning what helps our customers take action when it comes to their retirements,” Murphy said.
Boston-based John Hancock, a division of Manulife Financial Corporation, supports more than 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401k plans, and college savings plans. Additional information about John Hancock may be found at johnhancock.com.
OneAmerica, Russell Investments Launch Personalized Retirement Accounts
OneAmerica and global asset manager Russell Investments’ next-generation managed Personalized Retirement Accounts (PRA) solution was officially launched on April 8 in support of defined contribution plan clients.
“We are excited to introduce a new default investment solution with a modern touch that provides simplicity for the retirement plan participant and, for the retirement plan advisor, offers a desirable alternative,” said Terry Burns, assistant vice president of Products and Investments for OneAmerica Retirement Services division. “Our goal is to improve participants’ retirement outcomes by helping them invest and provide them a clearer picture of how they are tracking to meet their retirement income goals.”
Through the targeted/personal online portal, the companies say PRA can holistically take into consideration retirement accounts and assets that are outside of the employer’s retirement plan.
PRA also features an adaptive and personalized investing approach, a 3(38) fiduciary component over the participant’s asset allocation and a completely outsourced investment solution that can create better outcomes for participants.
PRA advantages also include embedded financial planning tools with advice to participants available on-demand.
“This is a great way for financial advisors to change the conversation from funds, fees and fiduciary to retirement readiness,” said Jay Breitenkamp, business development director, defined contribution, advisor and intermediary solutions, with Russell Investments. “We believe the Personalized Retirement Accounts solution is an upgrade to the retirement savings experience for the plan sponsor because we view it as a big ‘easy button’ for participants in that PRA does it for them when they may not have the time, interest or inclination to do it themselves.”
Managed accounts are personalized investment portfolios tailored to the specific needs of the account holder and, the companies say, are increasingly desired by retirement plan advisors and sponsors who are looking to provide an added layer of guidance for participants.
Unlike target date funds, a managed account looks at factors beyond a participant’s age and target retirement date, such as gender, salary, current account holdings, contribution rate, market experience and additional retirement assets held outside of the managed account.
From a recent survey by OneAmerica of more than 12,000 OneAmerica-serviced retirement plan participants, respondents indicated their top financial concern is not having enough for retirement. PRA, the company says, can provide a roadmap for them to understand how much they will need based on their personal situation and provide an opportunity for them to take action toward reaching their retirement income goals.
Each participant’s customized asset allocation is assessed quarterly and adjusted as needed based on progress toward his or her targeted retirement income goal.
Indianapolis-based OneAmerica offers retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products to serve the financial needs of its policyholders and customers. Seattle-based Russell Investments is a global investment solutions provider, dedicated to helping investors reach their long-term goals. Russell Investments is not an affiliate of any OneAmerica company.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
