Locked-in Retirement Account (LIRA)
Suitable for individuals with pension assets from a former employer. Funds are "locked-in" to ensure a steady stream of income during retirement, with tax-deferred growth until withdrawal.
Wealth management products and services offered by:
Locked-in Retirement Account (LIRA)
Suitable for individuals with pension assets from a former employer. Funds are "locked-in" to ensure a steady stream of income during retirement, with tax-deferred growth until withdrawal.
Wealth management products and services offered by:
Locked-in Retirement Account (LIRA)
Suitable for individuals with pension assets from a former employer. Funds are "locked-in" to ensure a steady stream of income during retirement, with tax-deferred growth until withdrawal.
Wealth management products and services offered by:
A LIRA preserves and grows pension funds transferred from a previous employer.
Tax-Deferred Growth
Similar to an RRSP, any investment income earned within a LIRA—including interest, dividends, and capital gains—is tax-sheltered. You do not pay taxes on these earnings until you begin making withdrawals in retirement.
Asset Preservation
The "locked-in" nature of the account is designed to protect your future. By restricting immediate access, the LIRA ensures that your pension benefits are available to provide a lifelong income stream when you stop working.
Investment Control
While the funds originate from a company pension, a LIRA gives you the autonomy to manage your own portfolio. You can choose from a variety of qualified investments, such as mutual funds, stocks, bonds, and GICs, to align with your personal risk tolerance.
A LIRA preserves and grows pension funds transferred from a previous employer.
Tax-Deferred Growth
Similar to an RRSP, any investment income earned within a LIRA—including interest, dividends, and capital gains—is tax-sheltered. You do not pay taxes on these earnings until you begin making withdrawals in retirement.
Asset Preservation
The "locked-in" nature of the account is designed to protect your future. By restricting immediate access, the LIRA ensures that your pension benefits are available to provide a lifelong income stream when you stop working.
Investment Control
While the funds originate from a company pension, a LIRA gives you the autonomy to manage your own portfolio. You can choose from a variety of qualified investments, such as mutual funds, stocks, bonds, and GICs, to align with your personal risk tolerance.
A LIRA preserves and grows pension funds transferred from a previous employer.
Tax-Deferred Growth
Similar to an RRSP, any investment income earned within a LIRA—including interest, dividends, and capital gains—is tax-sheltered. You do not pay taxes on these earnings until you begin making withdrawals in retirement.
Asset Preservation
The "locked-in" nature of the account is designed to protect your future. By restricting immediate access, the LIRA ensures that your pension benefits are available to provide a lifelong income stream when you stop working.
Investment Control
While the funds originate from a company pension, a LIRA gives you the autonomy to manage your own portfolio. You can choose from a variety of qualified investments, such as mutual funds, stocks, bonds, and GICs, to align with your personal risk tolerance.
Understanding the LIRA Account
Who could open a LIRA?
The LIRA is designed for former members of a registered pension plan who have terminated their employment and wish to maintain the tax-sheltered status of their pension benefits while gaining control over their investment strategy.
Source-Only Funding
Unlike a TFSA or RRSP, you cannot make out-of-pocket cash contributions to a LIRA. It is funded exclusively through the transfer of "vested" pension benefits when you leave a pension-sponsored job.
Withdrawal Restrictions
Funds are generally inaccessible until you reach a specific age (typically 55, depending on provincial or federal legislation). The account is intended to be converted into a Life Income Fund (LIF) or an annuity to provide retirement pay.
Special Unlocking Provisions
While funds are locked, certain jurisdictions allow for "unlocking" under specific circumstances, such as financial hardship, shortened life expectancy, non-residency, or if the total balance falls below a "small account" threshold.
Mandatory Conversion by Age 71
A LIRA must be closed by December 31 of the year you turn 71. At this time, the balance must be converted into a retirement income vehicle (like a LIF) or used to purchase a life annuity.
Understanding the LIRA Account
Who could open a LIRA?
The LIRA is designed for former members of a registered pension plan who have terminated their employment and wish to maintain the tax-sheltered status of their pension benefits while gaining control over their investment strategy.
Source-Only Funding
Unlike a TFSA or RRSP, you cannot make out-of-pocket cash contributions to a LIRA. It is funded exclusively through the transfer of "vested" pension benefits when you leave a pension-sponsored job.
Withdrawal Restrictions
Funds are generally inaccessible until you reach a specific age (typically 55, depending on provincial or federal legislation). The account is intended to be converted into a Life Income Fund (LIF) or an annuity to provide retirement pay.
Special Unlocking Provisions
While funds are locked, certain jurisdictions allow for "unlocking" under specific circumstances, such as financial hardship, shortened life expectancy, non-residency, or if the total balance falls below a "small account" threshold.
Mandatory Conversion by Age 71
A LIRA must be closed by December 31 of the year you turn 71. At this time, the balance must be converted into a retirement income vehicle (like a LIF) or used to purchase a life annuity.
Understanding the LIRA Account
Who could open a LIRA?
The LIRA is designed for former members of a registered pension plan who have terminated their employment and wish to maintain the tax-sheltered status of their pension benefits while gaining control over their investment strategy.
Source-Only Funding
Unlike a TFSA or RRSP, you cannot make out-of-pocket cash contributions to a LIRA. It is funded exclusively through the transfer of "vested" pension benefits when you leave a pension-sponsored job.
Withdrawal Restrictions
Funds are generally inaccessible until you reach a specific age (typically 55, depending on provincial or federal legislation). The account is intended to be converted into a Life Income Fund (LIF) or an annuity to provide retirement pay.
Special Unlocking Provisions
While funds are locked, certain jurisdictions allow for "unlocking" under specific circumstances, such as financial hardship, shortened life expectancy, non-residency, or if the total balance falls below a "small account" threshold.
Mandatory Conversion by Age 71
A LIRA must be closed by December 31 of the year you turn 71. At this time, the balance must be converted into a retirement income vehicle (like a LIF) or used to purchase a life annuity.
Comparing the difference between a TFSA and an RRSP
Feature
TFSA
RRSP
Main Purpose
Preserving pension assets for retirement
General retirement savings and tax planning
Main Purpose
Preserving pension assets for retirement
General retirement savings and tax planning
Source of Funds
Pension transfers only (no cash deposits)
Individual contributions and transfers
Source of Funds
Pension transfers only (no cash deposits)
Individual contributions and transfers
Tax on Growth
Tax-deferred until withdrawal
Tax-deferred until withdrawal
Tax on Growth
Tax-deferred until withdrawal
Tax-deferred until withdrawal
Tax on Withdrawals
Taxed as regular income
Taxed as regular income
Tax on Withdrawals
Taxed as regular income
Taxed as regular income
Withdrawal Rule
Locked-in until retirement age (with exceptions)
Flexible; can be withdrawn anytime (subject to tax)
Withdrawal Rule
Locked-in until retirement age (with exceptions)
Flexible; can be withdrawn anytime (subject to tax)
Age Limit
Convert to LIF/Annuity by age 71
Convert to RRIF/Annuity by age 71
Age Limit
Convert to LIF/Annuity by age 71
Convert to RRIF/Annuity by age 71
Investment fund and portfolio management services are provided through Corex Financial Inc.
Align your savings with your values
Start investing the halal way—anytime, anywhere. Access your portfolio, track performance, and build your wealth with confidence.
Investment fund and portfolio management services are provided through Corex Financial Inc.
Align your savings with your values
Start investing the halal way—anytime, anywhere. Access your portfolio, track performance, and build your wealth with confidence.
Investment fund and portfolio management services are provided through Corex Financial Inc.
Align your savings with your values
Start investing the halal way—anytime, anywhere. Access your portfolio, track performance, and build your wealth with confidence.
Investment fund and portfolio management services are provided through Corex Financial Inc.
Even more ways to grow your wealth
RRSP
Registered Retirement Savings Plan
An RRSP is a retirement savings plan registered with the CRA that you or your spouse contribute to. Contributions reduce your taxable income, while growth remains tax-sheltered until withdrawal, typically at retirement.
Tax Deduction: Contributions lower your annual income tax.
Tax-Deferred Growth: Earnings are not taxed until withdrawn.
Spousal RRSP
Registered Retirement Savings Plan
This plan allows a high-income earner to contribute to an RRSP owned by their partner. The contributor receives the immediate tax deduction, while the spouse owns the assets and pays tax upon withdrawal.
Income Splitting: Evens out retirement income to lower family taxes.
Immediate Savings: The higher-earner reduces their current taxable income.
Disclaimer
* Corex Financial Inc. ("Corex") offers wealth management products and services to Manzil customers. Corex Financial Inc. is a registered Portfolio Manager in each of the provinces and territories of Canada and as an Investment Fund Manager in the provinces of Ontario, British Columbia, Alberta, Newfoundland and Labrador, and Quebec. Assets in your Corex accounts are held with various custodians, each registered as an investment dealer with the applicable securities regulators. All custodians are members of the Canadian Investment Regulatory Organization (“CIRO”) and the Canadian Investor Protection Fund (CIPF). All trademarks are the property of their respective owners. Corex will determine what investments are suitable for you.
** This website is to be used for information purposes only and is not intended to provide any financial, legal, accounting, or tax advice. No securities regulatory authority has assessed the merits of these securities or the information contained on this website.
*** Your capital is at risk with any type of investment. The value of your portfolio can increase or decrease. Past performance is no guarantee of future results. An investment may be risky and may not be suitable for an investor's goals, objectives, and risk tolerance. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.
This information is for educational purposes. Should any conflict arise between the information presented here and the official CRA website, the CRA website is considered the correct source. Please consult with a licensed representative for further assistance.
*Investment fund and portfolio management services are provided through Corex Financial Inc.*
Disclaimer
* Corex Financial Inc. ("Corex") offers wealth management products and services to Manzil customers. Corex Financial Inc. is a registered Portfolio Manager in each of the provinces and territories of Canada and as an Investment Fund Manager in the provinces of Ontario, British Columbia, Alberta, Newfoundland and Labrador, and Quebec. Assets in your Corex accounts are held with various custodians, each registered as an investment dealer with the applicable securities regulators. All custodians are members of the Canadian Investment Regulatory Organization (“CIRO”) and the Canadian Investor Protection Fund (CIPF). All trademarks are the property of their respective owners. Corex will determine what investments are suitable for you.
** This website is to be used for information purposes only and is not intended to provide any financial, legal, accounting, or tax advice. No securities regulatory authority has assessed the merits of these securities or the information contained on this website.
*** Your capital is at risk with any type of investment. The value of your portfolio can increase or decrease. Past performance is no guarantee of future results. An investment may be risky and may not be suitable for an investor's goals, objectives, and risk tolerance. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.
This information is for educational purposes. Should any conflict arise between the information presented here and the official CRA website, the CRA website is considered the correct source. Please consult with a licensed representative for further assistance.
*Investment fund and portfolio management services are provided through Corex Financial Inc.*
Disclaimer
* Corex Financial Inc. ("Corex") offers wealth management products and services to Manzil customers. Corex Financial Inc. is a registered Portfolio Manager in each of the provinces and territories of Canada and as an Investment Fund Manager in the provinces of Ontario, British Columbia, Alberta, Newfoundland and Labrador, and Quebec. Assets in your Corex accounts are held with various custodians, each registered as an investment dealer with the applicable securities regulators. All custodians are members of the Canadian Investment Regulatory Organization (“CIRO”) and the Canadian Investor Protection Fund (CIPF). All trademarks are the property of their respective owners. Corex will determine what investments are suitable for you.
** This website is to be used for information purposes only and is not intended to provide any financial, legal, accounting, or tax advice. No securities regulatory authority has assessed the merits of these securities or the information contained on this website.
*** Your capital is at risk with any type of investment. The value of your portfolio can increase or decrease. Past performance is no guarantee of future results. An investment may be risky and may not be suitable for an investor's goals, objectives, and risk tolerance. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur.
This information is for educational purposes. Should any conflict arise between the information presented here and the official CRA website, the CRA website is considered the correct source. Please consult with a licensed representative for further assistance.
*Investment fund and portfolio management services are provided through Corex Financial Inc.*