This episode is about unlocking your pension plan or Locked-In Retirement Account /LIRA when you're nearing or ready for retirement. These accounts are governed by different rules depending on whether they fall under federal or provincial legislation. This is a continuation from our last episode where we covered the various rules for accessing the LIRA prior to retirement.Depending on what jurisdiction the pension is regulated under determines what options you have for accessing the funds. We're talking more in this episode about retirement and walking through what happens when it's time to draw out your funds — province by province.
Saskatchewan – "The Most Flexible"
In Saskatchewan, once you reach age 55, most LIRAs can be transferred into a PRIF (Prescribed RRIF). The PRIF has no maximum withdrawal limit — just the RRIF-style minimums — giving retirees flexibility. Spousal consent is required if you're married or common law. Importantly, if you stop needing income, you can even transfer funds back into a LIRA before age 71.
Alberta – "The 50% Unlock"
In Alberta, you can unlock up to 50% of your LIRA when converting to a LIF at age 50 or older. That unlocked portion can be transferred to an RRSP or RRIF with no immediate tax consequences. The remaining funds must stay in the LIF and follow minimum/maximum rules. This is a one-time opportunity — once you've used it, you can't do it again.
British Columbia – "Least Flexible"
B.C. legislation does not allow unlocking of locked-in accounts, except in rare hardship or special cases. Funds move to a LIF starting at age 50 and are then subject to minimums and maximums. Unfortunately, not a very flexible option compared to other provinces.
Manitoba – "PRIF Advantage"
At 55 or older, Manitoba allows a one-time 50% unlock of your LIRA or LIF into a PRIF. The remaining 50% stays in the LIF. A PRIF has no maximum withdrawal, which makes retirement income planning more flexible. Additionally, at age 65, Manitoba allows for full unlocking (100%) of your LIRA or LIF, which is one of the most generous provisions in Canada.
Ontario – "Flexible, but Later"
Ontario also allows a one-time 50% unlock, but only at age 55 or older, when transferring to a LIF. If you unlock, the remaining portion goes into an RLIF. Ontario also has five categories of financial hardship unlocking — things like medical costs, eviction prevention, or low income.
Federal (Including Yukon, NWT, Nunavut)
For federally regulated pensions — like those in banking, telecom, or transport — the PBSA (Pension Benefits Standards Act) applies. Options include:
- 50% unlocking when transferring to a Restricted LIF at age 55+.
- Unlocking for financial hardship, non-residency, small balances, or shortened life expectancy.
Other Provinces (Quick Mentions)
- Quebec: Since 2025, retirees 55+ can withdraw any amount from a Quebec LIF (no maximums).
- Nova Scotia: Effective April 2025, allows one-time 50% unlocking at age 55+.
- New Brunswick, Newfoundland & Labrador: Have financial hardship provisions and special LIF rules.
- Prince Edward Island: Still no pension legislation covering locked-in accounts — rules depend on the pension plan itself.
References & Resources
- Federal (PBSA): https://www.osfi-bsif.gc.ca
- Saskatchewan: https://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/pension-plan-members/pensions-faq
- Alberta: https://www.alberta.ca/pensions-interpretive-guidelines-rates-capsa
- British Columbia: https://www.bcfsa.ca/public-resources/pensions/unlocking-pension-funds
- Manitoba: https://www.gov.mb.ca/pension/
- Ontario: https://www.fsrao.ca
- Quebec: https://www.rrq.gouv.qc.ca/en/programmes/rcr/CRI_FRV/Pages/CRI_FRV.aspx
- Nova Scotia: https://www.novascotia.ca/finance/en/home/pensions/faq.aspx.html
- New Brunswick: https://fcnb.ca/en/pensions
- Newfoundland & Labrador: https://www.gov.nl.ca/dgsnl/pension-regulation/directives/
