A new report from CIBC suggests that Canadians are hoarding $75 billion in extra cash and they continue to sock away money.

The CIBC World Markets report finds that the billions have been amassed in cash reserves as of December 2015. This extra money would normally be invested in the market, but thanks to the economic downturn, people are saving rather than spending.

"We are currently witnessing the creation of personal cash buffers larger than at any other time on record," said Benjamin Tal, Deputy Chief Economist at CIBC World Markets and co-author of the report Chasing In On Fear with Senior Economist Royce Mendes. "From a broader perspective, the Canadian economy is losing out because capital is not being allocated efficiently."

Since the 2008 global financial crisis, excess cash reserves held by Canadians have risen notably   and at the current level of $75 billion, they represent almost 10 per cent of the total value of overall personal liquid assets in Canada. In the past year alone, cash positions are estimated to have risen more than 11 per cent – the fastest pace since early 2012.

The report finds that all Canadians are making cash a bigger part of their portfolios. Those under the age of 35 are holding twice as much cash as those over the age of 65, about 33 per cent versus 15 per cent.

"While holding cash can guard against short-term spikes in volatility, it's certainly a long-term drag on portfolio returns," added Tal.

Over the past five years, the S&P/TSX Volatility Index, a gauge of investors' fear, peaked over 20 eight times, yet in the 90 days following the peaks, the S&P/TSX Composite Index returned an average of 9 per cent.