The recent budget provides much increased flexibility for LIF holders to gain access to their assets. LIFs are locked-in pension accounts that hold assets that are transferred from a registered pension plan to an individual who would prefer to manage his or her own account rather than remain in the pension plan.  LIFs are also created when individuals are laid off from an employer.

Individuals who are 55 years or older, and with LIF holdings of up to $22,450, will be able to wind up their accounts and have the option of transferring the assets to an RRSP or a registered retirement income fund (RRIF). Those 55 and older are also entitled to a one-time conversion of up to 50% of their LIF holdings into an RRSP or RRIF, with no maximum withdrawal limits. Additionally, those facing financial hardship (such as low income, disabilities, or medical costs) will be entitled to unlock up to $22,450 from their LIFs.