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Life Income Fund (LIF)

A LIF is to a LIRA what a RRIF is to an RRSP. Almost as flexible as a RRIF, the LIF allows you to make withdrawals according to your needs while affording you total control of your capital. The law provides for maximum and minimum withdrawal limits based on you age, or that of you spouse.


A Life Income Fund (LIF ) is a form of registered retirement income fund (RRIF ) in which you can transfer savings from your supplemental retirement plan (pension fund), LIRA or Locked-In RRSP. The amount accumulated in your employer’s pension fund can be transferred directly to a LIF if
you quit your job or opt for early retirement.

A LIF gives you access to your LIRA or RRSP savings in the form of retirement income. A minimum amount must be withdrawn every year. Withdrawals are subject to a maximum amount to ensure that your retirement income does not run out too quickly.

The accumulated capital transferred from your LIRA or Locked-In RRSP to a LIF continues to grow tax-free. Only the withdrawn funds are taxable.


The terms regulating conversion and temporary income (detailed in the characteristics table below) depend if the LIF is subject to federal or provincial legislation. Be sure to identify the appropriate jurisdiction.

Savings from a pension fund can be transferred directly to a LIF or after going through a LIRA (provincial jurisdiction) or a Locked-In RRSP (federal jurisdiction).

If your employer falls under Quebec jurisdiction, your LIF will be subject to Quebec legislation. In the case of a company under federal jurisdiction (train  and air transportation, radio and television, banks among others), the LIF will be subject to federal legislation.

Capital from pension funds set up by
companies under provincial jurisdiction
LIRA Provincial LIF
Capital from pension funds set up by
companies under federal jurisdiction
Federal LIF


Converting a LIRA/Locked-In RRSP into a LIF The conversion must be completed before December 31st of the year when you turn 71.
Eligible investments GIC, Term Deposit, ActionGIC, mutual funds, etc.
Contributions It is not possible to contribute to a LIF. Only funds from a LIRA/Locked-In RRSP or directly from a pension fund can be transferred to a LIF.
Minimum withdrawal
  • Assessing the minimum withdrawal: the amount is based on your age, or that of your spouse, and on the LIF balance. An age-related multiplication factor is assigned to the LIF balance to determine the minimum amount.
  • Your spouse must be younger than you in order to base the calculation on his/her age.
  • The minimum withdrawal amount is not mandatory during the first year of the RRIF.
  • There are no tax deductions at source on the minimum amount. However, taxes will be levied on all other income over and above the minimum amount.
Maximum withdrawal The maximum withdrawal amount is calculated based on age, the LIF balance and the reference rate established for the LIF.
Temporary income
  • Federal LIF: does not allow temporary income withdrawals.
  • Provincial LIF: temporary income can be withdrawn under certain conditions depending on your age at the time of the request. Consult your advisor for details and conditions regarding temporary income.
Foreign content limit Since June 28, 2005, the investment cap on foreign content has been lifted for registered accounts.


This investment product is suited for you if:

  • You prefer a self-directed investment;
  • You want your investment to grow tax-free;
  • You wish to withdraw any given amount at any time (subject to a minimum and maximum amount).

This investment product is not suited for you if:

  • You prefer to rely on the services of the fund managers rather than manage your retirement capital yourself.




Legal notice

Existing investment accounts are offered by Laurentian Bank of Canada (“Laurentian Bank”) or LBC Financial Services Inc. (“LBCFS”). LBCFS is a wholly-owned subsidiary of Laurentian Bank and a legal entity, distinct from Laurentian Bank, B2B Trustco, and any issuers or mutual fund companies whose products it distributes. All new investment account opening must be through LBCFS. A Laurentian Bank advisor is also a licensed LBCFS mutual fund representative. LBCFS’s liability is limited to the conduct of its representatives in the performance of their duties for LBCFS.

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