Ok, I have thus far worked for 2 companies, one had a pension plan, that was converted into an LIRA after I left, and another employer matched RRSP contributions, but employer contributions were locked in. WTF do they do this? Is the LIRA some sort of category retirement fund that was created so the banks can screw people over for more money? Grrrrr
Why do LIRA (locked in RRSPs) exist?
- Thread starter nottyboi
- Start date
Tax reasons, I believe, in the pension law. When you leave a company, you can often elect to keep your pension accrued value in their plan, or take it with you. The locked-in RRSP makes that happen. Like the pension, you won't be able to get at that money until retirement age.nottyboi said:
It is especially useful if you don't trust your company's long term viability. Otherwise, you may end up screwed out of that benefit.
You should be able to move it to other financial institutions if you want.
The reason why it is locked in is so you won't be able to access the money prior to retirement and blow it all on dancers/MPA's/escorts and starve to death when you are old and gray.nottyboi said:
Heard that there is or will be changes in the pension law to allow you to "unlock" some of this money prior to age 71.Depending upon your age it is important to manage your money prudently and actually involve yourself in this. If you are young you can grow this money quite well using time and interest. If you are close to retirement you would want to be sure that you do not try and go for the big score that could grow the fund which is great but more likely wipe out these retirement dollars. Always check to see the costs of your investement with respect to fees and charges against the expected returns. If you want good advice and service you have to pay or if you want to manage the money yourself and avoid charges then have a plan and follow it.
