The LIRA is a new name for a locked-in RRSP. The LIRA acts as a holding account so there is no immediate income paid from the account. Funds in this option remain tax sheltered until converted to a life annuity or transferred to a prescribed RRIF. You choose where the funds are invested. The LIRA is only available until the end of the year in which you turn 69.

Highlights

• Formerly called a locked-in RRSP.
• Holding account only.
• You direct the investment.
• Earnings accumulate tax-free.
• Available to the end of the calendar year in which you reach 69 years of age.

Advantages

• Allows you to defer purchase of an annuity until rates are more favourable

Disadvantages

• Only available until age 69

This option is subject to a transfer fee.