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What is a LIF?

April 26, 2017lif

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What is a LIF?

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When your Locked-In Retirement Account (LIRA) matures, you have the option of converting it to a Life Income Fund (LIF). This operates in the same way as a RRIF, except there is both a minimum and maximum annual withdrawal amount. The minimum withdrawal is based on the minimum withdrawal for a RRIF, while the maximum is set by the pension regulatory authority. The objective is to make sure your LIF provides you with an income for the rest of your life. In most jurisdictions, a LIF must be converted to an annuity by the end of the year in which you turn 80.