What is a LIRA?
A locked-in retirement account (LIRA) is a type of investment plan in Canada. Find out how LIRAs work and who in Canada can open one.
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A locked-in retirement account (LIRA) is a pension-related savings account that is locked in until you reach retirement age. If you have a pension plan at your company and you leave the company, some or all of your pension can be rolled into a LIRA. The funds in a LIRA must be transferred to a life income fund (LIF) or used to purchase a life annuity by the end of the year you turn 71.
Example: “I have a LIRA from my former employer’s company pension, and I can’t touch it because it’s locked in until I retire.”
Read more on LIRAs:
- What are the tax rules for LIRAs?
You can convert it into a LIF or an annuity - Transferring employer pensions to LIRAs, LIFs and RRSPs
Can you take it with you? After quitting his job, Andrew wants to know if he can transfer that employer’s pension to an RRSP. - LIRA regrets
This woman’s husband transferred his workplace pension to a high-fee LIRA and is looking for a smarter solution - Ways to “unlock” retirement savings in a LIRA
Keith wants to know what to do with his DPSP now that it has been transferred to a locked-in retirement account. - The process of unlocking a LIRA account in Canada
What can you do? What can’t you do? Let’s clarify some conflicting online information about locked-in retirement accounts. - How does a LIRA work after a pension transfer?
Ted is confused about his investment options after leaving a DC pension, and whether his pension money would be better off in a regular RRSP.
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