LIRA, or locked-in retirement account and LRSP, or long-range strategic plan are very comparable in principle. The noteworthy difference between these two accounts is that a locked-in retirement arrangement is controlled using provincial legislation, while a locked-in retirement savings account is subject to federal law. LRSP's are under federal jurisdiction, and LIRA'S are within provincial jurisdiction.
Workplace pensions that are paid out to you before retirement will go on either LIRA or LRSP. When you are retired, and you want to start collecting regular income from LIRA, you need to relocate your account.
Hopefully, at one point in your life you, will retire from work. It is a time in everyone’s life when they look forward to retirement. It is a time when your working career is over and you can enjoy your days off. There are two main types of retirement plans that you can sign up for. One is called the LIRA. It stands for the Locked-In Retirement Account.
The other one is called the RRSP which stands for the Registered Retirement Savings Plan. These are plans for Canadians. The difference between these two include the ways in which they are taxed. LIRAs can wait to pay taxes on the money until you retire or you take it out. RRSP, however, take out the taxes each year.