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  • Feb 22nd, 2012 3:14 am
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[OP]
Newbie
Oct 3, 2011
1 posts
COQUITLAM

Locked IN RRSP B.C.

I have been told that I CANNOT receive any funds from my locked in RRSP even though I desperately need it for hardship purposes. Is there any way I can get around this and get some money before I'm thrown on the street? Can a lawyer help? :(
4 replies
Sr. Member
User avatar
Feb 21, 2009
579 posts
15 upvotes
are you sure it is a RRSP? or could it be a locked in LIRA? was it a pension that was transferred? If it is just a regular RRSP you had then there is no restriction on taking money out of it....after the withholding tax.....if it was indeed a locked in pension fund then there is very little you can do.
Deal Addict
User avatar
Dec 3, 2004
4021 posts
1578 upvotes
Vancouver
Needmoney1 wrote:
Oct 4th, 2011 8:19 pm
I have been told that I CANNOT receive any funds from my locked in RRSP even though I desperately need it for hardship purposes. Is there any way I can get around this and get some money before I'm thrown on the street? Can a lawyer help? :(

Assuming your locked-in RRSP is more than $9,660, then there is no way to withdraw the money unless:

1) You're leaving Canada permanently (this is a lot of work, can't just cross the US Border and say you're leaving, so don't get any ideas)
2) You're dying and have a shortened life expectancy

They do NOT take into account hardship. So you could be living on the street and still won't be able to unlock it. This money is intended for your retirement, not for use now. If you are in need of immediate hardship assistance and are at risk of going on the street, you can quality for immediate social assistance and get paid right away. That is what social assistance is for. You need to come up with a more permanent solution to your situation.
Sr. Member
Sep 18, 2004
513 posts
196 upvotes
Looks like it's possible in Ontario:
For example, since 2000, plan holders in Ontario may apply to withdraw locked-in funds for reasons of financial hardship or shortened life expectancy.
Source: http://www.morningstar.ca/globalhome/in ... 2820059461

BC may have an equivalent law, or if not, you may be able to game the system by registering your permanent address with a friend or relative in Ontario. This would definitely be a lot of work, but may be worth it if your RRSP is large, and you're about to end up on the street.
Newbie
Feb 21, 2012
1 posts
VICTORIA
adamtheman wrote:
Oct 5th, 2011 12:16 am
Assuming your locked-in RRSP is more than $9,660, then there is no way to withdraw the money unless:

1) You're leaving Canada permanently (this is a lot of work, can't just cross the US Border and say you're leaving, so don't get any ideas)
2) You're dying and have a shortened life expectancy

They do NOT take into account hardship. So you could be living on the street and still won't be able to unlock it. This money is intended for your retirement, not for use now. If you are in need of immediate hardship assistance and are at risk of going on the street, you can quality for immediate social assistance and get paid right away. That is what social assistance is for. You need to come up with a more permanent solution to your situation.

The accuracy of your information is great, unfortunately, it's a bit harsh. The fact is, THERE NEEDS TO BE A HARDSHIP CLAUSE IN BC.

Case in point:

1) $20,000.00 in LRIF
2) no credit due to bankruptcy at 50
3) defaults on multiple payday loan cycle (23% biweekly).
4) aged 54
5) just needs $2,000 to get back on track


The LRIF isn't going to save this person in "retirement" if they have to go bankrupt today.

Since the bankruptcy act is built on the premise that "two strikes and you're out", there should at least be an option
for the potential bankrupt to withdraw some of the funds they built up as pensionable service to begin with.

What GOOD is there in having a person drawing welfare, (which permanently fixes one below rent level) when they have adequate funds to recover from
the temporary cash flow problem?

DEMONSTRABLE financial hardship SHOULD BE an option in BC. It is in most provinces in Canada and has saved somebody I love from being a BURDEN ON THE WELFARE SYSTEM.
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