Locked-in Retirement Accounts (LIRA’s) are Canadian tax sheltered accounts that employers will transfer pension assets into. There are very specific rules regarding the access to these funds and any growth in the fund will be tax-deferred until the withdrawal.

LIRAs are usually not opened to the participant until the age of 55 (locked-in) at which time you will be allowed to withdraw a one-time 50% lump sum amount with the balance switching into a LIF (Life Income Fund) to be withdrawn annually. Annual payouts are based on the CRA percentage allotments.