Ontario Proposes Expanded Access to Locked-in Pension Funds
September 15, 2026
The Ontario government has released proposed amendments that would expand access to pension funds held in locked-in accounts.
Currently, Ontario locked-in accounts such as Life Income Funds (“LIFs”) and Locked-in Retirement Income Funds (“LRIFs”) can generally only be unlocked through specific categories such as:
- 50% unlocking at first conversion to a LIF;
- shortened life expectancy;
- non-residency;
- financial hardship; and
- small balance unlocking as of age 55.
As announced in the 2026 Ontario Budget, the proposal would permit the full unlocking of LIFs and LRIFs, provided that:
- The owner has reached the earliest date they could have commenced a pension under the originating pension plan; and
- The amount requested exceeds the maximum annual withdrawal amount otherwise permitted from the LIF or LRIF.
The proposal would also permit full unlocking of LIRAs at any age if the balance is less than 40% of the Year's Maximum Pensionable Earnings.
If implemented, the changes would provide individuals with greater flexibility to access retirement savings that are currently subject to locking-in restrictions, provided that spousal consent (if applicable) is given.
The Government is accepting public comments on the proposal until October 2, 2026.
Click on ‘More information’ below to read the proposed amendments:
