Retirement Savings Plans
Locked-in Retirement Account (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 employer's pension plan may be transferred to a LIRA.
Who Should Consider a LIRA?
- Persons wishing to transfer a registered pension plan so that they can exercise a certain amount of control over their investments.
Features and Advantages
- You obtain an income tax deferral on your investment income.
- Your protection against financial market fluctuations may attain and even exceed 100% of the capital invested.
- You can borrow to increase your contributions through the Ecoflex RRSP line of credit.
- You can protect your savings against potential creditors*.
*Certain conditions apply.
Under the 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 you turn 71.