Locked-in retirement account (LIRA)
Earn interest on your funds from your former employer’s pension plan in a locked-in retirement account (LIRA).
If you're a Desjardins member, book an appointment on AccèsD to open your LIRA.
Not a member? Schedule a call to book an appointment.
What is a LIRA?
A locked-in retirement account (LIRA) is an individual plan you use to transfer over the accumulated funds in your former employer's pension plan. For example, you might want a LIRA if you leave your job. The funds you invest in a LIRA continue to grow tax-free until they're withdrawn.
A LIRA is a locked-in account, meaning you can't make contributions or withdraw your money until retirement. Depending on the field the former job is in, where it's located and applicable laws, the locked-in plan may be a locked-in retirement savings plan (LRSP) instead.
LIRA benefits
Tax-sheltered investments
Your money grows tax-free until retirement.
Investments for your goals
When you transfer your pension funds to a LIRA, you can choose the types of investments you want.
Money set aside for retirement
The money you invest in your LIRA is specifically for retirement income. You'll grow your money with peace of mind that your retirement goals are within reach.
LIRA rules
LIRA eligibility
- You're no longer participating in your employer's pension plan
- You received money from the pension plan of your former spouse's or common-law partner's employer after getting separated or divorced
Up to age 55, your employer generally gives you the option to transfer your pension's value to a LIRA if you leave your job. After age 55, you might be able to transfer part of your pension to a LIRA depending on the pension plan's regulations.
LIRA withdrawals
You can't withdraw money directly from a LIRA. You must first convert your LIRA to a life income fund (LIF) or an annuity.
You'll then have 2 options for withdrawals:
- Through the LIF, you withdraw the money you need on a regular basis, between the minimum and maximum required amount.
- With the life annuity, you pay a lump sum for it and then receive steady income for the rest of your life.
The terms and conditions for LIF withdrawals depend on the plan's jurisdiction. You can transfer the funds in a LIRA to a LIF at any age.
LIRA income, paid directly from a LIF or an annuity, is added to your taxable income.
Exceptions for unlocking a LIRA before retirement
You can't make withdrawals from your LIRA before retirement, but there are some exceptions. For example, you may be able to withdraw money if:
- You have a critical illness that reduces your life expectancy
- You're experiencing financial hardship
- You've lived outside of Canada for over 2 years
- You have a low balance in your LIRA
The rules for exceptions depend on the plan's jurisdiction. Speak to your Desjardins advisor for more information about LIRA withdrawals.
LIRA investment options
Find out which investments you can hold in your LIRA.
Regular Savings Account
Save for short-term goals with no minimum deposit required.
Guaranteed fixed-rate investments (term savings)
Enjoy a known return on your investment from day one. Both your capital and interest are guaranteed.
Market-linked guaranteed investments
Harness the growth potential of stocks without risking your capital.
Desjardins Funds
Invest in innovative and competitive fund portfolios tailored to your profile.
Guaranteed Investment Funds Helios2 Contract
Earn interest while protecting your estate and your savings.
Switch to online brokerage
Want to explore online brokerage to invest on your own? Whatever your level of investment knowledge, we offer everything you need to make informed decisions and invest with confidence:
- No-fee online transactions for stocks and exchange-traded funds (ETFs)
- State-of-the-art trading platforms
- Comprehensive training
- Powerful analysis tools
Responsible investment pays off
Commit to a sustainable and equitable economy by investing in businesses that value the environment, the community and diversity. With our socially responsible investments, you benefit from good potential returns while taking action for the future.
FAQ
You must transfer all the funds in your LIRA to a LIF or convert them into an annuity no later than December 31 of the year you turn 71.
If you have other sources of retirement income you can access, such as another retirement savings plan or income from a rental property, consider using those funds first so you can keep generating income in your LIRA. If you need the money in your LIRA, you can convert all or some of it into retirement income.
Speak to your advisor about your retirement savings and withdrawal options.
When the time comes to convert your LIRA into retirement income, LIFs and annuities each have their own advantages and conditions.
With a LIF, you choose and manage your investments. Your withdrawals can vary from year to year, according to your needs and the minimum and maximum required amount.
You don't manage your investments with an annuity—you purchase one then receive income from it. Your investments are protected from market fluctuations and you get steady, guaranteed income. This makes it easier to budget.
You could also choose both options so you benefit from the flexibility of a LIF and the stability of an annuity. Your advisor can help you come up with a withdrawal strategy for your specific goals.
Upon your death, your LIRA balance goes to your spouse or common-law partner tax-free, under certain conditions. If you don't have a spouse or common-law partner, the balance goes to your beneficiaries or estate.
Depending on your employer's activities and where you were working, there are different locked-in plans you can open after leaving your job:
A locked-in retirement account (LIRA) for jobs under Quebec or Ontario jurisdiction
A locked-in retirement savings plan (LRSP) for jobs under federal jurisdiction
Speak to your advisor when you change jobs to learn more about transferring your pension funds to a locked-in plan.
Book an appointment to open your LIRA
On AccèsD
Book an appointment on AccèsD if you're a member, and meet with an advisor online, in person or over the phone.
By phone
Montreal area:
514-224-7737 Phone number of customer service for the Montreal area. This link opens your phone app. (514-CAISSES)
Elsewhere in Canada:
1-800-224-7737 Phone number of customer service for Canada. This link opens your phone app. (1-800-CAISSES)
We can also call you when it's convenient.
How to open the LIRA
1. Contact your advisor
Make an appointment with your advisor to open a LIRA. Your advisor will transfer over the pension funds using the information your former employer provides.
2. Choose your investments
According to your savings goals and investor profile, your advisor will help you choose the right investments for your LIRA. The only deposit or transfer is made when the LIRA is opened.
3. Plan your withdrawals
We'll also help you create a withdrawal plan for you to save on taxes and still achieve your goals.