Your investing questions, our clear answers.

Our response:

Pensions are regulated provincially. In Ontario, you have the following options for a defined contribution (DC) pensions plan when you retire:

1. Transfer the funds to an individual locked-in income fund (LIF).
2. Buy an annuity from an insurance company.

You can also put your money into both. For example, you can buy an annuity and transfer the balance of your pension to a LIF. You can also use your LIF savings to buy an annuity at any time in the future, if your need for guaranteed income increases as you get older.

Learn more about your DC pension options at retirement.