Retirement

LIRA (locked-in retirement account) or locked-in RRSP

A LIRA (Locked-In Retirement Account), also known as a locked-in RRSP, is a savings product designed to grow the funds accumulated for retirement. This type of account holds “locked-in” amounts, meaning the funds cannot be withdrawn before retirement, except in specific cases allowed by law.

The amounts invested in a LIRA grow tax-deferred, just like in an RRSP, and continue to generate income until retirement. When the time comes, these funds can be used to purchase a life annuity or be transferred into a Life Income Fund (LIF) to receive regular income. A LIRA is therefore a key financial planning tool to ensure a stable and secure income during retirement.