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Locked-in Retirement Account (LIRA)


What is a Locked-in Retirement Account (LIRA)?

A Locked-in Retirement Account does much as the name suggests; it locks in the money you've saved through a registered pension plan with an employer. When you leave your employers, or are made redundant, your pension pot will be transferred into a LIRA.


What is the difference between a RRSP and a LIRA?

A LIRA locks in your pension funds until you retire. You can't make any contributions, or withdraw money from it, like you can with an RRSP. When you finally retire, you must convert your LIRA into a fund that offers an income, which could be any one of the following:


  • A life annuity from an insurance company
  • Life Income Fund (LIF)
  • Locked-In Retirement Income Fund (LRIF)
  • Prescribed Registered Retirement Income Fund (PRRIF)


How much can I contribute?

You can't contribute to a LIRA, and you can't withdraw money from it either. It is simply a safe account to hold any company pension until you retire or reach the age of 71. It is especially useful if you have several careers and/ or change employers, as it secure your pension each time you change jobs.


Key features of a LIRA

  • Lock in your company pension so you always get what you are entitled to
  • Useful for those with changing careers or employers
  • Keeps your pension(s) safe until you retire
  • Can be used to buy an income for your retirement


What's the difference between a LIRA and a LRSP (Locked-In Retirement Savings Plan)?

Nothing. Same thing, just different names.


How Jeff can help

Jeff and the team are keen to ensure you have the knowledge and understanding to be able to choose the right retirement options. Jeff will help guide you through the options for converting your LIRA, and explain the difference advantages of a LIF, LRIF and PRRIF according to your needs, and goals for retirement. He can also sort out whether you need a LIRA or a locked-in RRSP, as this depends on which jurisdiction your employer's pension plan was set up in.


Confused about LIRAs, LIFS, and LRIFs? You are not alone! Call us for clear, impartial, independent advice on 519-485-5801

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7 St. Andrew Street

Ingersoll, Ontario

N5C 1K6 Canada


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