Life Income Fund (LIF) and Locked-in Retirement Income Fund (LRIF)

After you retire, the money from your supplemental pension plan or your Locked-In Retirement Account can continue to grow tax-free in a Life Income Fund (LIF) or a Locked-in Retirement Income Fund (LRIF).*

These plans are designed to provide you with income for life.

* LRIFs are only available in certain provinces.

LIF-eligible savings products

Term investments, excluding the Non-redeemable Guaranteed Interest Fund

How do these plans work?
- - You have to transfer investments from a LIRA or locked-in RRSP into a LIF or an LRIF by December 31 of the year you turn 71.
  - Once you start making withdrawals, you have to withdraw an amount each year that falls between the minimum and the maximum set out by the applicable tax legislation. The reason for the maximum withdrawal is to ensure that enough money remains in the plan to provide you with income for the rest of your life.
  - LIF and LRIF withdrawals are added to your taxable income for the current year.