The Government of Nova Scotia has changed the rules governing the unlocking of life income funds (LIFs) and locked-in retirement accounts (LIRAs).
As such, effective April 1, 2025, the following changes will come into effect for Nova Scotia LIFs and LIRAs held by your clients:
- Unlocking of 50% of retirement funds when transferring to a LIF at age 55.
- Possibility of unlocking of small amounts (50% of the year’s maximum pensionable earnings (YMPE)) at 55 instead of 65.
- Elimination of temporary income provisions for LIFs established after April 1, 2025.
- Easier unlocking of funds in the event of reduced life expectancy or non-residence in Canada.
