The Locked-In Retirement Account (LIRA) 1 and Locked-In Retirement Savings Plan (LRSP) 1 enable you, as an employee to maintain the tax-deferred status of pension plan proceeds received when you leave a company. LIRA's lock in your money, but not your investment options. These plans are governed by federal or provincial pension legislation.
A Life Income Fund (LIF) 1 is a retirement income plan using locked-in pension money and the owner of the LIF can control the investments held within the fund. In addition to the requirement for a minimum annual withdrawal (like a RRIF), LIFs also set a maximum withdrawal amount.
Your annual withdrawal must be within these minimum and maximum amounts as specified by legislation. In most provinces, when the LIF holder reaches age 80, the LIF must be converted into a life annuity.
GIC's are generally one to five-year deposits with a bank or other financial institution like a trust or insurance company.
