LIRA

A Locked-In Retirement Account (LIRA) is a savings tool specially designed to receive the amounts acquired under a pension plan (or retirement plan). If you leave or lose your job, the locked-in amounts you have accumulated in your ex-employer’s pension plan may be transferred to a LIRA.

Persons wishing to transfer a registered pension plan so that they can exercise a certain amount of control over their investments should consider a LIRA.

Under the CRA regulations, a LIRA cannot be redeemed under any circumstances and must be converted to a Life Income Fund (LIF), or another retirement income instrument by December 31 of the year an individual turns 71.