Income from your LIF: age matters

You can begin drawing a life income from your LIF at any age. However, some conditions apply for a temporary income.

Remember: the earlier you begin drawing an income, the sooner you will use up your savings!

If you are under age 54

You have 2 options: life income and temporary income.

You can draw a life income at any time.

You can also draw a temporary income each year if your LIF offers that option. To be entitled to a temporary income, you must:

  • be under age 54 on 31 December of the year preceding your application
  • have only one LIF
  • not have income exceeding 40% of the maximum pensionable earnings (MPE), that is, $22 960, in the 12 months following the application for a temporary income, if you file an application in 2019.

    Income includes any amounts received in the form of salary or wages, interest or benefits, or in any other form (before tax), such as employment insurance benefits, Old Age Security benefits, an indemnity from the Commission de la santé et de la sécurité du travail (CSST), an indemnity from the Société de l'assurance automobile du Québec (SAAQ), interest income, bursaries or scholarships, disability insurance, or other. Income does not include any amounts received on behalf of others, such as the Family Allowance or support payments.

Your application for a temporary income is valid only for the year in which it is filed.

If you are between age 54 and 64

You have two options: life income and temporary income.

You can draw a life income at any time.

You can also draw a temporary income each year if your LIF offers that option, regardless of your employment income. To be entitled to a temporary income, you must be at least 54 years of age and less than 65 years of age on 31 December of the year preceding your application.

Your application for temporary income is valid only for the year in which it is filed.

If you are age 65 or over

You have only one option: a life income.

You can draw a life income from your LIF, but you can no longer obtain a temporary income if you are age 65 or over as of 31 December of the year preceding your application. As of age 65, you can generally begin receiving a pension under the Québec Pension Plan and, depending on your date of birth, an Old Age Security pension.

Beware of fraudulent withdrawals

We urge you to be wary of classified ads that propose various tax-free ways to withdraw money from your LIRA or LIF, such as by purchasing stock shares or taking out a loan. Those methods are fraudulent. They can have significant tax effects, and you could lose your money. To find out more, please consult the Fraud in classified ads This link will open in a new window. section on the Autorité des marches financiers du Québec's Web site.

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