Planning makes perfect.

The LIRA, like a Locked-In RRSP, is a special plan that you can transfer funds into from your pension plan. As with an RRSP, the interest paid on your GICs is tax-sheltered while the funds remain in your LIRA. The LIRA must be converted to a Life Income Fund (LIF) or used to buy an annuity by the end of the year when you turn 71.