LIRA

Locked-in retirement accounts are an investment option for employees who leave a company and that company's pension plan. These accounts offer shielding from creditors and let you hang on to the tax-deferred status of the money in your pension plan.

If you leave your employer, you can transfer your pension to a LIRA. They're similar to RRSPs in that you control the investment decision. However, you can't make contributions to these plans beyond the transfer, and these funds are under pension legislation restricting the withdrawal of the funds. You can't mature a LIRA until you're within 10 years of normal retirement age. You also aren't allowed to cash in the plan and withdraw it as a lump sum.

However, you may convert a LIRA to a life income fund (LIF) to give you a stream of income.

LIFs allow you to mature a locked-in retirement plan and receive income. Similar to RRIFs, you have to withdraw a minimum amount each year. Unlike RRIFs, there is a limit on maximum withdrawals as well. In Alberta you can receive a lifelong income from a LIF.

It's also worth northing that you may withdraw as much money as you need from a LIRA if you present a medical certificate that proves you have a disability expected to reduce your life expectancy.