A Locked-In Retirement Account (LIRA) is a Canadian investment account designed specifically to hold locked-in pension funds for former plan members, former spouses or common-law partners, or surviving spouses or partners. Funds held inside a LIRA will normally only become available (or “unlocked”) to holders upon retirement.

The difference between a LIRA and a Registered Retirement Savings Plan (RRSP) is that, where RRSPs can be cashed in at any time, a LIRA cannot. Instead, the investment held in the locked-in account is “locked-in” and cannot be removed until either retirement or a specified age outlined in the applicable pension legislation. Once funds have been transferred from a company pension plan to a LIRA, further contributions cannot be made into the plan unlike a RRSP.