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What is a locked-in retirement savings account?

April 26, 2017locked-in retirement savings account

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What is a locked-in retirement savings account?

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If you were entitled to a deferred pension at the time you terminated your membership in a registered pension plan, one of your options was to transfer the value of your pension benefit into a locked-in retirement savings account. This type of account is exclusively for money earned in a registered pension plan, and generally speaking, any money transferred into it must remain “locked in”. This means that the money payable to you from this account can be used only to provide retirement income, which normally means that you must wait until you reach age 55. Also, while your money is locked in, it cannot be seized by creditors. In Ontario, there are three types of locked-in accounts: • Locked-in Retirement Account (LIRA), • Life Income Fund (LIF), and • Locked-in Retirement Income Fund (LRIF).