Answer :
The unlocking provision not related to LIRAs is Education Expenses, as LIRAs are typically only accessed early for reasons such as Financial Hardship, Non-residency, or Shortened life expectancy. The correct answer is D.
LIRAs, or Locked-In Retirement Accounts, are retirement savings vehicles in Canada that hold locked-in funds transferred from pension plans. These funds are subject to specific regulations and restrictions to ensure they are used for retirement income.
However, certain unlocking provisions exist to allow individuals to access these funds under exceptional circumstances. Financial Hardship is one such provision that permits individuals facing significant financial difficulties to access a portion of their LIRA funds.
Non-residency allows individuals who are no longer Canadian residents to unlock their LIRA funds and transfer them to another retirement savings vehicle or withdraw them, subject to tax implications.
Shortened life expectancy allows individuals diagnosed with a terminal illness or with a significantly reduced life expectancy to unlock their LIRA funds to support their financial needs during their remaining time. Education Expenses, however, are not typically considered a valid reason for unlocking LIRA funds.
While education is undoubtedly important, LIRAs are designed specifically for retirement savings, and unlocking provisions are generally reserved for circumstances directly related to retirement or financial hardship. Therefore, education expenses do not qualify as an unlocking provision pertaining to LIRAs. Thus, option D is correct.
