What are Locked-in Retirement Accounts (LIRAs) and locked-in RRSPs? They're registered plans you can transfer locked-in investments into for your retirement.
Who are they for?
LIRAs and locked-in RRSPs are available if you've left your job (generally before age 55) and want to manage your retirement money yourself. You can choose to transfer your vested pension rights to this type of plan.
Eligible savings products
LIRA or locked-in RRSP – which plan applies to you?
It all depends on which jurisdiction (provincial or federal) your employer's plan was established under.
How do these plans work?
With a LIRA or a locked-in RRSP, you manage your supplemental pension plan yourself and watch it grow tax-free.
Unlike an RRSP, these investments are locked in, because they're intended to provide you with retirement income. This means you usually can't take out the money until you retire.
You have to transfer your LIRA or locked-in RRSP into a LIF/LRIF or a life annuity by December 31 of the year you turn 71.