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- calendar_today November 3, 2026
Recent research from the Bank of Canada provides detailed insights into cash usage and savings behavior during the COVID-19 pandemic, offering indirect perspectives on retirement preparedness among Canadians, including those in Toronto. While the discussion primarily addresses national trends, the design of the Bank Note Distribution System (BNDS) places Toronto at the center of Ontario's cash supply, making findings especially relevant for Toronto residents.
The study found that during the pandemic, the value of notes in circulation (NIC) increased sharply, from $83 billion pre-pandemic to more than $96 billion by late September. Demand for large-denomination notes ($50 and $100), which often serve as a store of value, drove most of this growth—suggesting that Canadians were motivated by precautionary or savings considerations during a period of heightened economic uncertainty. This behavioral shift implies increased cash holdings as a form of financial risk management, potentially reflecting a greater need for accessible personal savings as part of retirement planning. See full Bank of Canada discussion.
The study also analyzed survey data on actual consumer cash holdings. The July 2020 Cash Pulse Survey indicated that among Canadians holding cash, median cash-on-hand returned to pre-pandemic levels ($70), down from the elevated levels seen early in the pandemic. About 54 percent of Canadians used cash for transactions in July 2020, up from 36 percent in April as containment measures eased. Importantly, a large majority (78 percent) reported no intention to go cashless within the next five years, up from 74 percent earlier in the year, indicating long-term confidence in holding liquid savings, which is a valuable component of retirement preparedness. See full Bank of Canada discussion.
While the report does not directly address retirement accounts, pensions, or explicit financial planning indicators, the enduring increase in savings through large-denomination cash holdings and a shift in payment behavior suggest Canadians—Toronto residents included—are attentive to safeguarding their financial future amid uncertainty. This increased propensity to save in liquid forms could represent a short-term reaction or a more durable approach to personal financial security and retirement readiness.
