John Hancock Financial Network plans to launch a new retirement income program designed to help financial professionals and advisors in its network maximize sustainable retirement income for their clients and potentially minimize the risks clients face. The Retirement Ready program leverages a product allocation approach and includes a web-based product allocation analysis tool, a robust array of multimedia educational and training materials for clients, financial professionals and advisors.
"Research shows that the most trusted advisors are those who are now helping clients plan the decumulation stage of retirement," said Brian Heapps, interim president of John Hancock. "So we worked with some of the best in the business to develop a comprehensive program to help ensure our financial professionals and advisors are in the best possible position with the most advanced tools to help guide their clients."
"Traditional strategies such as asset allocation, where clients invest in different asset classes according to their risk tolerance, may work well when accumulating assets. Alone, however, they are often not enough to help protect clients from key retirement risks such as volatile equity markets, inflation, sequence of returns, and longevity," explained Bruce Harrington, head of retirement sales and strategy at John Hancock.
JHFN has developed a program which not only leverages the advantage of an asset allocation strategy but also combines it with other products that offer guaranteed streams of income to help clients meet their financial needs. This solution is a product allocation strategy. Product allocation involves placing assets into distinct product categories to create an optimal mix of products, based on a client's personal needs, which tap into each product's features and benefits.
The Retirement Ready program also includes a tool called the RSQ Analyzer, or retirement sustainability quotient. It determines each client’s optimal product mix and provides a quantitative measurement of the relative likelihood that their portfolio will generate the income they desire for the rest of their lives.
John Hancock Financial Network is a national network of independent firms with approximately 1,900 advisors across the U.S.