Millennials, who have begun investing in mutual funds earlier than other generations and who tend to rely on target-date funds as "comfortable," now have three new retirement portfolios to consider.
The portfolios are among the target-date offerings of John Hancock; each is focused on investors expecting to retire in or near 2060. They are the John Hancock Retirement Living through 2060, Retirement Living through II 2060 and Retirement Choices at 2060 portfolios.
The two Retirement Living portfolios, which aim to help manage longevity risk, use a glide path that decreases equity exposure to about 50 percent through the target date; equities gradually taper down over the subsequent 20 years of retirement until reaching roughly 25 percent.
Recommended For You
While the Retirement Living portfolio is made up of a combination of active open-end mutual funds and other investments, the Retirement Living through II portfolio is a combination of index-tracking exchange-traded funds (ETFs) and other investments.
The Retirement Choices portfolio is designed for investors who wish to limit downside risk in the years leading up to retirement. It follows a glide path that aims for equity exposure of eight percent at the target date, where it remains fixed thereafter. The portfolio's asset allocation strategy is implemented through a combination of ETFs and other investments.
The portfolios are managed by John Hancock Asset Management's co-heads of global asset allocation, Robert M. Boyda, Marcelle Daher, and Nathan W. Thooft.
The new portfolios are designed with millennials in mind, as younger workers increasingly become more prevalent in the workforce. Investment Company Institute data indicate that 35 percent of all 401(k) plan assets belonging to workers in their twenties were invested in target-date funds as of the end of 2013. The move to include new portfolios could be a good one for John Hancock, considering that some millennials excel at saving for retirement.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
