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 Québeckers following recent decisions by the Government of Québec 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 Québec has taken the lead in this area, and other provinces will follow suit. “We have developed an expertise in multiemployer pension plans in Québec. By taking a leading role on this issue, Québec 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 Québec 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 Québec 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 Québeckers and help them better understand the world of investments, risk and returns. It is certainly a challenge, but one Sun Life Financial can meet.”
When asked to comment on her first six months at the helm of Sun Life Québec, Hudon described her experience in passionate fashion. “Working with so many talented people in such a high performance context stimulates me to the highest degree,” she said, adding that she has been very impressed by the support she’s received from head office since her arrival. “My experience so far has definitely exceeded my expectations. I am very happy.”