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Convert your LIRA or Locked-in RRSP immediately at age 55 or wait until you turn 71?

The answer depends on your personal situation but generally, it is better to convert it as late as possible.

You will be able to delay the conversion of your LIRA or Locked-in RRSP if your income is sufficient. You may draw an income from various sources:

  • benefits from a company pension plan
  • public annuities
  • personal non-registered savings
  • personal income (from, for example, a rental unit or investments)
If you use your other sources of income first, the money in your LIRA/Locked-in RRSP continues to grow tax-free.

However, if you need additional cash to pad your budget, you might have to move up conversion deadline. Then, you may convert your LIRA/Locked-in RRSP, in full or in part, into a retirement income plan.

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