Files from Provincial release:
Starting April 1, 2025, Nova Scotians aged 55 and up will have more options when it comes to handling their retirement savings, thanks to updates to the province’s Pension Benefits Act.
Finance Minister Timothy Halman explained that these changes will give retirees more control over their money, similar to what other provinces already offer. The goal is to help people plan better and maintain their lifestyle as they transition into retirement.
What’s changing?
Currently, most pension money remains “locked-in” and must be paid out in regular installments, unless special conditions allow for a lump sum withdrawal.
With the new rules:
- Nova Scotians aged 55 or older can unlock up to 50% of their locked-in funds when they transfer their money into a Life Income Fund (LIF).
- This change gives people more freedom, reducing the need for temporary income payments, which have been an option since 2003.
Other improvements:
- No more need to submit LIF contracts and amendments to the superintendent of pensions.
- Pension plan statements will now be sent to former and retired members every two years (previously, only active members received annual updates).
Important note:
- If you have a LIF contract with temporary income provisions in place before April 1, 2025, you can keep it until 2034 or switch to a new one under the updated rules.
For more details, you can visit the Nova Scotia Department of Finance’s website or check the links provided in the official release.