Locked-In Retirement Account (LIRA) and Locked-In RSP

Are you changing jobs? Transfer the money accumulated in your employer's pension fund.

Is this savings account for you?

  • You have left or lost your job.
  • You have accumulated money in your former employer’s retirement plan or pension fund.
  • You are looking to transfer this money to an individual plan to grow it tax-free.

Main feature :Tax-sheltered invested capital

Total or partial withdrawal :No withdrawals are permitted before retirement, except in certain circumstances

Conversion :You may convert all or part of your LIRA or Locked-In RSP into an annuity or LIF at any time

Deadline :By December 31st of the year you turn 71



Conversion You may convert all or part of your LIRA or Locked-In RSP into an annuity or LIF at any time.
  • Funds are unseizable.
  • At death, LIRA or Locked-In RSP balance is transferred to surviving spouse or, in certain conditions, your estate.

Should I convert my LIRA or Locked-In RSP immediately at age 55 or wait until I turn 71?

The answer depends on your personal situation but generally, it is better to convert it as late as possible.

You may be able to delay the conversion of your LIRA or Locked-In RSP if you have sufficient income. Your income may come from a variety of sources:

  • benefits from a company pension plan
  • public annuities
  • non-registered savings
  • personal income (from, for example, a rental unit or investments)

If you use your other sources of income first, your money can continue to grow tax-free.

However, if you find you need additional cash to pad your budget, you can always move up your LIRA or Locked-In RSP conversion deadline. Then you may convert it in whole or in part into retirement income.

You must convert your Locked-In Retirement Account (LIRA) or Locked-In RSP into a LIF no later than December 31 of the year you turn 71.

More information

Did you know?

To help you achieve your retirement goals, the Caisse populaire Guaranteed Investment Funds will provide you with a guaranteed and predictable income, regardless of market fluctuations.

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