Posthaste: Three myths about retirement in Canada, according to Canadians who are already there
Canadian train and plane maker Bombardier dropped a bombshell this morning when it announced that it was cutting its earnings forecast for the year in half and reassessing its partnership with aviation giant Airbus.
Bombardier now expects 2019 adjusted earnings to be about $400 million, compared with the previous forecast of between $700 million and $800 million.
Free cash flow for 2019 is now expected to be negative $1.2 billion, much lower than previously forecast negative $500 million.
On the Airbus Canada partnership, Bombardier said: “While the A220 program continues to win in the marketplace and demonstrate its value to airlines, the latest indications of the financial plan from ACLP calls for additional cash investments to support production ramp-up, pushes out the break-even timeline, and generates a lower return over the life of the program. This may significantly impact the joint venture value.”
We’ll see how that plays when markets open.
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Don’t expect retirement to be as advertised, is the advice retirees have for working Canadians, according to a new poll. The RBC poll surveyed Canadians aged 50 and over to find out what they expect from retirement and what the reality is.
Myth 1: While most (55%) of pre-retirees aged 50 and over expect to know their retirement date more than a year in advance, only 39% of retirees said they had this notice; 16% had no advance notice at all.
Myth 2: About a third (29%) of pre-retirees expect to be snowbirds, but only 18% of retirees polled head south for winter.
Myth 3: While half of pre-retirees plan to work in retirement, only 11% of retirees said they had returned to either part-time or full-time work.
Here’s what you need to know this morning:
Supreme Court hears Trans Mountain pipeline case in Ottawa
Minister of Finance Bill Morneau will hold consultations for Budget 2020 at a roundtable discussion hosted by the Business Council of Alberta
Middle Class Prosperity Mona Fortier and Labour Minister Filomena Tassi will hold consultations for Budget 2020 at a roundtable with stakeholders in Hamilton.
Industry Minister Navdeep Bains will announce an investment by the Digital Technology Supercluster as part of the Innovation Superclusters Initiative in Vancouver
AltaCorp Capital Inc., the capital markets arm of ATB Financial, will host a three-day conference in Toronto focused on energy, life sciences and diversified industries. Air Canada CFO Michael Rousseau will present.
Calgary Chamber of Commerce to be host to leaders in the agriculture industry, including Alberta Agriculture Minister Devin Dreeshen, Chuck Magro, President and CEO, Nutrien and Michael Hoffort, President and CEO, Farm Credit Canada
Barrick Gold Corp. to release preliminary production results from fourth quarter 2019
Notable Earnings: Magna International
Today’s Data: U.S. retail sales, U.S. import price index and export price index, U.S. business inventories, NAHB Housing Market Index
Canada’s national vacancy rate declined for the third year in a row to 2.2% in 2019, the lowest since 2002, according to the Canada Mortgage and Housing Corporation’s Rental Market Survey released Wednesday. Vancouver at 1.1% and Toronto at 1.5% were the lowest in Canada, but this year Montreal’s vacancy rate helped drive the national decline, falling to a 15-year low of 1.5%. Tighter rental markets mean higher rents and this past year’s national increase in average rents for a two-bedroom apartment was the biggest jump in almost 20 years. The chart below shows increasing rents across the country. Vancouver at $1,748 a month for a two-bedroom is the most expensive place to rent, and Toronto at $1,562, Calgary at $1,305 and Halifax at $1,202 were all above the national average. Montreal at $855 is still a deal.