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- calendar_today November 3, 2026
Retirement preparedness remains a focus of policymakers, financial institutions, and individuals alike. Official data sources, such as the Bank Note Distribution System and national payment surveys, provide valuable insight into financial behavior and liquidity among Canadians, including those in Toronto. Analyzing these data sources helps assess financial readiness for retirement, but certain measurement gaps persist.
One important metric tracked is the circulation and demand for bank notes. The Bank Note Distribution System supplies financial institutions, such as those in Toronto, with bank notes to meet public demand. During the COVID-19 pandemic, the value of notes in circulation (NIC) in Canada increased sharply, from $83 billion before the pandemic to more than $96 billion in late September 2020. This increase was almost double what might have been expected under typical conditions, and was largely driven by a preference for holding large-denomination notes—suggesting a shift toward precautionary savings or a store-of-value motive (Bank of Canada staff paper, p.5-6).
Cash withdrawals during this period initially spiked but normalized by mid-summer 2020. However, deposits of cash back to the Bank of Canada remained abnormally low, indicating that much of the cash withdrawn remained outside of financial institutions for a prolonged period. This behavior aligns with an increase in financial prudence and liquidity preferences, potentially beneficial for short-term financial resilience but not a direct indicator of long-term retirement preparedness (p.5-6).
Survey data further reveal patterns in cash holdings and use. The July 2020 Cash Pulse Survey found that the median Canadian who holds cash had $70 in cash on hand, matching pre-pandemic levels. The percentage of Canadians using cash for transactions rose markedly as pandemic restrictions eased, with 54% reporting cash use in July 2020. Notably, 78% of respondents expressed no intention to go cashless in the near future, reflecting a sustained reliance on physical currency (p.7).
While these official metrics capture liquidity and transaction behaviors, they do not directly measure specific retirement savings or the adequacy of resources for post-retirement living standards. The data reveal strong liquidity preferences and an inclination to hold cash as a safety buffer—factors relevant to overall financial wellness—but do not account for access to pensions, registered retirement savings, investment diversification, or anticipated future expenses.
In sum, official data sources inform our understanding of consumer financial behavior in Toronto and across Ontario by highlighting cash holdings, preferences for liquidity, and responses to economic uncertainty. However, gaps remain: comprehensive assessment of retirement preparedness requires integrating these insights with data explicitly focused on retirement assets, savings rates, and long-term financial planning—information not captured in prevailing cash usage and payment surveys.
