The ABCs of
Important notice - 2021
See our Frequently Asked Questions for details on the
temporary easing measure we have implemented regarding
LIF withdrawals during the COVID-19 pandemic.
Please note that our
LIF Quick Calc tool, which makes it possible to determine the amounts that you can withdraw from an
does not take into account the measure and will not be modified during the outbreak.
A life income fund (LIF) is a specific type of registered retirement income fund (RRIF) from which you can draw a retirement income (payment). The amounts in an
LIF originate from a supplemental pension plan (pension fund).
RRIF, which has no withdrawal ceiling, you cannot withdraw from an
LIF more than the maximum authorized for the year.
RRIF, you must withdraw the minimum required under tax rules. You are not required to make a withdrawal during the year in which the
LIF is opened.
Types of income from your
You can draw a
life income from your
LIF. In addition, it is possible to draw a
temporary income from your
LIF, if this option is provided for in your
You can begin
drawing a life income at any age. Some conditions apply with regard to a temporary income.
Under certain circumstances, you can obtain a
refund of your
- You can transfer your
LIF to an
LIRA at any time until the end of the year in which you reach age 71, for example, if you wish to postpone payment of a retirement income. However, the transfer could be delayed if your investments have not come to maturity on the date you request the transfer.
- You can also transfer your
LIF to another
LIF during the year, for example, if you change financial institutions. However, the transfer could be delayed if your investments have not come to maturity on the date you request the transfer.
The amounts transferred from your first
LIF cannot be used to provide you with a
life income until the beginning of the following year. Be sure to withdraw all the amounts you want for the rest of the year before making the transfer.
The same rule applies to payment of a
temporary income, unless you are under age 54 and still meet the conditions for entitlement to a temporary income. If you meet those conditions, an amount can be paid to you, even if your
LIF was transferred during the same year.
- You can also
transfer an amount from your
LIF to an
list of financial institutions offering
LIFs to find out what transfer instruments are available.
To find out more...