I have heard of

  • Locked In Retirement Accounts (LIRAs) also known as Locked-in Retirement Savings Plans (LRSPs)
  • Registered Retirement Savings Plans (RRSPs)

How are they different and what are the advantages and disadvantages of each?


The difference is the lock-in. :-)

An RRSP is contributed-to when you feel like it, and money can be removed under various circumstances (including the home-buyers program).

A locked-in plan is often the result of a pension conversion upon leaving a place of employment. When I left a company, I had three options for my pension. Leave it, transfer it to a receiving pension plan, or convert it to a Locked-in RSP.

The premise here, at least in part, is that given there are various tax advantages to the money growing tax-free, you have therefore allowed yourself to be limited in your withdrawal options.

Hope that helps


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.