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Ten rules to know about locked-in retirement accounts

Elaine Crook - May 23, 2019
The days when our parents or grandparents worked for the same employer their entire career have long passed. Now, people change jobs and employers often and this has increased the need to move one’s pension savings from the old company.

The days when our parents or grandparents worked for the same employer their entire career have long passed. Now, people change jobs and employers often and this has increased the need to move one’s pension savings from the old company. That usually requires you to open a locked-in retirement account (LIRA) or a locked-in registered retirement savings plan (locked-in RRSP). The reasoning for having this plan locked-in is to make sure these funds are used for your retirement – as though you were getting a company pension. Once you take out those pension savings, it is up to you to invest the money for your future, as the government rules prevent you from cashing it in.

 

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