When and how to convert your LIRA or Locked-in RRSP

The fund accumulated in a LIRA or Locked-in RRSP can be converted into a Life Income Fund or a life annuity at any time. There is no minimum age to convert a LRA or a Locked-in RRSP, but it must be done before the end of the year in which you turn 71, just like an RRSP.

People are retiring earlier these days, often at age 55. In this case, is it better to convert your LIRA or Locked-in RRSP immediately at age 55 or wait until your turn 71? When the times comes for you to convert your RRSP into retirement income, you have some options: a Life Income Fund, or a life annuity.