Locked-In Retirement Account (LIRA)
Hold and grow your pension assets for retirement. Open a LIRA today.
A LIRA is a registered account that allows you to continue growing your pension fund after you leave a job or there’s a change in your relationship status.
Benefits of a LIRA
Tax-sheltered growth
Your investment gains grow tax-free until withdrawn. When it comes time to take money out during retirement, you’ll likely do so at a lower tax rate.
Control over your investments
When you transfer your pension fund to a LIRA, you can choose where your money is invested – instead of an employer deciding for you.
Peace of mind
Because the savings in your LIRA is for retirement, you can rest easy knowing there will be money set aside for your future.
You can open a LIRA prior to retirement if you:
- Change employers and leave a sponsored group pension plan
- Receive a portion of a former spouse’s or common-law partner’s pension assets in your settlement
- Receive a spouse’s or common-law partner’s pension or LIRA as a beneficiary
Once you transfer your pension fund to a LIRA, you can’t make additional contributions. But you can purchase investments to help grow your savings. The types of investment products you choose depend on your risk tolerance, timeline and goals.
Explore our investment products
Mutual funds
A straightforward way to invest in professionally managed funds that provide diversification and growth potential.
Segregated funds
Your money is invested across professionally managed investments while a portion of your principal is kept safe.
Transfer restrictions
Your options when opening a LIRA depend on the type of pension plan your funds are being transferred from. There are two common types of plans:
- A defined benefit pension plan guarantees an annual income upon retirement that’s based on a percentage of your salary. This type of plan requires that you transfer a specific maximum to a LIRA and take the remaining funds as taxable cash.
- A defined contribution pension plan provides a retirement income based on how much has been contributed and how well the investments have performed. This type of plan can be moved to a LIRA without many restrictions.
Withdrawal rules
Typically, you can’t make withdrawals until you transfer your savings to a Life Income Fund (LIF) or purchase annuities in retirement.
But exceptional circumstances may allow you to unlock your savings sooner. Keep in mind you’ll pay tax on any funds you take out. Exceptional circumstances include financial hardship, reduced life expectancy and permanent departure from Canada. In some provinces, you can unlock 50% of your account balance when you turn 55, subject to restrictions and taxes.
*Accounts are regulated provincially to align with corresponding pension plan laws. Rules vary from province to province.
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Not all products are available in all provinces.
In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.
Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Quebec and the territories. Segregated funds and annuities are underwritten and administered by Co-operators Life Insurance Company.
Co-operators Life Insurance Company and Co-operators Financial Investment Services Inc. are committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please visit our privacy policy for more information.
Co-operators® is a registered trademark of The Co-operators Group Limited.