In a speech to the Canadian Club of Montreal, the president of Sun Life Financial in Québec, Isabelle Hudon, said she is highly optimistic about the financial future of Quebeckers following recent decisions by the Quebec government to establish new voluntary retirement savings plans. In particular, she welcomed the addition of an automatic enrollment mechanism that has a withdrawal option for all participants.
Hudon pointed out that Quebec has taken the lead in this area, and other provinces will follow suit. “We have developed an expertise in multiemployer pension plans in Quebec. By taking a leading role on this issue, Quebec will foster the birth of similar schemes in every province in the country,” she said.
“The automatic enrollment mechanisms have a major impact in terms of increasing the number of savers. The government has taken a very responsible decision, which will foster a concrete, long-term improvement in the retirement preparations of many employees,” she added.
Developing financial culture
In her speech, Hudon spoke at length about collective prosperity and the need for Quebec to nourish a culture of investment. She also stressed the importance of the contribution of women to the economy over the last 35 years. “Historically, women have played a fundamental role in Quebec society. They have become, through the force of circumstance, an essential component of the financial security of their families.”
Hudon also discussed the importance of developing financial literacy across the broader population. Understanding the basis of financial decisions is a crucial issue. “Sun Life Financial has played a leading role in recent efforts to help employers and their employees to better understand the nuances of their pension plans and the basics of finance. More than ever, it’s part of our responsibility as a service provider to offer education to plan participants,” she stressed.
Hudon believes it is the more entrepreneurial side of personal finance—which seeks to maximize assets and returns—that now requires more attention. In her assessment, this can be achieved by helping clients develops the three pillars of financial literacy: knowledge, skills and self-confidence.
“Financial literacy is an ambitious task, requiring us to continuously innovate in order to reach Quebeckers and help them better understand the world of investments, risk and returns,” she said.
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