Insights & advice
When can you unlock a LIRA?
July 2022 – 15 min read
Key takeaways
Generally, the only way to unlock a LIRA is to retire, and the earliest age you can do that is 55
Different jurisdictions have different rules for LIRA unlocking
There are some reasons for LIRA unlocking which are common to more than 1 jurisdiction

What’s in this article?
Getting money out of your LIRA
If you have a locked-in retirement account (LIRA), it’s because you’ve transferred money into it from a former employer’s pension plan or from a former spouse’s employer pension plan, for example, when marital assets were divided during a divorce.
For that reason, typically the only way to unlock a LIRA is to retire, and the earliest age you can do that is 55.
To get income from a LIRA in retirement, you’ll need to transfer the funds to a life income fund (LIF) or a life annuity.
Money that’s moved into a LIRA can be self-managed.
Have a savings plan through your employer?
Use your online account to check your balance, make additional contributions, manage your personal information and more.
LIRA withdrawal exceptions
Different jurisdictions have different rules for LIRA unlocking other than at retirement. Some reasons are common to more than 1 jurisdiction:
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Small amounts – If the amount of money you have in your LIRA is considered too small be useful as a pension, you may be able to unlock it.
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Shortened life expectancy – If a doctor provides an opinion that you have a terminal illness or disability that will significantly shorten your life, you may be able to unlock the money in your LIRA.
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Non-residence in Canada– If the Canada Revenue Agency (CRA) confirms in writing that you’re a non-resident of Canada for tax purposes, you may be able to unlock your LIRA.
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Financial hardship– In some jurisdictions, if you’re facing financial hardship, you may apply to unlock a portion or all the money in your LIRA.
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50% unlocking – Depending on your jurisdiction, you may qualify to unlock up to 50% of your LIRA funds and transfer them to a registered retirement savings account (RRSP).
Check the rules for your specific LIRA to confirm your options:
- FederalOpens a new website in a new window - Opens in a new window (includes Yukon, NWT and Inuvik)
- British ColumbiaOpens a new website in a new window - Opens in a new window
- AlbertaOpens a new website in a new window - Opens in a new window
- SaskatchewanOpens a new website in a new window - Opens in a new window
- ManitobaOpens a new website in a new window - Opens in a new window
- OntarioOpens a new website in a new window - Opens in a new window
- QuebecOpens a new website in a new window - Opens in a new window
- Nova Scotia - Opens in a new window
- Newfoundland and LabradorOpens a new website in a new window - Opens in a new window
- New Brunswick Opens a new website in a new window - Opens in a new window
LIRAs don’t exist in Prince Edward Island.
Paying tax on LIRA withdrawals
You’ll pay income tax on any money you receive from an unlocked LIRA, or from withdrawals from a LIF or annuity into which you’ve transferred your LIRA funds.
What’s next?
Now that you know more about withdrawing money from a LIRA, why not meet with your advisor to:
Determine other sources of retirement income and what your total income might be in retirement
Review the LIRA withdrawal options available for your situation
Determine which strategy for withdrawing money from your LIRA best meets your needs
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.