Another recent survey finds Canadians are retiring at a later age as a way of accumulating more retirement savings. Fully 79% of Canadian employees and 82% of Ontario employees expect to delay retirement until age 60 or older -- up from 70% and 66% respectively over the past three years. The number one reason cited for retiring later in life is that employees are not able to save enough money.
Another survey finds that wealth in Canada is concentrated heavily in the top 10% - with the bottom 50% combined accounting for less than 6% of all wealth. According to the study from the Broadbent Institute, "Contrary to rosy reports of rising net worth and a post-recession recovery, these new numbers sound the alarm on Canada’s wealth inequality problem." Key findings:
- The top 10% of Canadians accounted for almost half (47.9%) of all wealth in 2012.
- The bottom 30% of Canadians accounted for less than 1% of all wealth.
- The top 10% held almost $6 in every $10 (59.6%) of financial assets excluding pensions - more than the bottom 90% combined.
The world is, apparently, facing a global job crisis. According to the World Bank the global economy needs to create an extra 600 million jobs worldwide by 2030 just to cope with the expanding population.
So how about some good news? Investors who were smart enough to play the “weak consumer” theme and invested in that fine purveyor of discounted household goods, the Dollarama chain of stores, are doing well. It is testament to the current state of the economy that Dollarama has been one of the stars on the TSX since the Great Recession. The company's stock has done well, the most recent earnings announcement suggests business will continue to boon. The company’s second quarter earnings report boasts an increase in sales, net earnings and per share earnings in Q2, 2014.
The highlights (compared to Q2 2013):
- Sales increased by 12.0 % to $572.6 million
- Comparable store sales (2) grew 4.2%, over and above 6.2% the previous year
- EBITDA (1) grew 13.5% to $108.6 million
- Operating income grew 17.5% to $99.2 million
- Diluted net earnings per common share increased by 25.6%, from $0.82 to $1.03
- In addition, 18 net new stores were opened
“With the opening of 43 net new stores so far in Fiscal 2015, we are on target to expand our store network across Canada by 70 to 80 net new stores this year," stated Larry Rossy, CEO and chairman of Dollarama.