Types of income from your
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.
You can draw two types of income from your life income fund (LIF):
temporary income, if your
LIF so provides.
Amounts withdrawn from
LIFs are taxable.
A life income... for as long as you live!
A life income is the retirement income you can draw every year from your
LIF until your death. You can apply for it at any age.
RRIFs (registered retirement income funds), you must withdraw the
minimum prescribed under taxation rules (the minimum is 0 $ the year in which the
LIF is opened).
However, you cannot withdraw more than the
maximum authorized for each year since the amounts in your
LIF must be sufficient to give you an income until your death. The maximum is calculated on the basis of your age, the balance in your
LIF and the reference rate set each year for
At the beginning of each year, the
financial institution calculates the minimum and maximum amounts that you are entitled to withdraw from your
LIF during the year. You then receive the amount that you wish to withdraw according to the number of payments provided for in the contract with the financial institution.
Temporary income: an additional amount
You can withdraw an additional amount from your
LIF, called a "temporary income". However, your
LIF contract must offer
the option of a temporary income and you must
apply each year to your financial institution. Certain age-based criteria apply.
When your financial institution receives your application for a temporary income, it calculates the amount that you can withdraw (if you are entitled to do so) and has you complete the required declarations. Even though payment of a temporary income reduces the life income amount, the maximum income drawn from the
LIF (temporary income plus adjusted life income) may in fact be higher.
A temporary income cannot be greater than 40% of the maximum pensionable earnings for the year in which the application is made, that is, $24 640 in
For more information