Locked In Retirement Account (LIRA)

A LIRA is an account designed to hold converted pensions. If you are leaving a job, prior to retirement, your pension will be converted to a LIRA. Your money inside the LIRA can be used to purchase a variety of investments including, mutual funds, segregated funds, stocks, bonds, guaranteed investment certificates (GIC) and others. These investments within your LIRA are all tax-sheltered, meaning you do not pay any interest on the dividends, or capital gains.  

Once your pension has been converted into a LIRA, you are not able to make any additional contributions. Withdrawing from a LIRA is very difficult, and in most cases, you will not be able to withdraw the funds until you convert it to a Life Income Fund (LIF) or annuity. 

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