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Life Income Fund (LIF): Who Qualifies and What You Get

Learn how the Life Income Fund (LIF) provides structured retirement income for individuals with locked-in pension funds in Canada.

The Life Income Fund (LIF) is a way to turn your locked-in pension funds into a steady stream of income during your retirement.

Who it's for

This scheme is for individuals who hold locked-in pension funds and are looking to manage how they receive those funds as income.

What you get

It provides you with structured retirement income, helping you receive regular payments rather than a single lump sum.

What it costs you

Using this fund requires you to manage specific withdrawal rules. You must navigate set minimum and maximum amounts that you are allowed to take out each year.

The catch to know

The most important thing to remember is that you cannot withdraw the full amount of your funds all at once.

How to apply

  1. Confirm your funds are currently in a locked-in pension format.
  2. Consult with a financial institution or advisor regarding your specific withdrawal limits.
  3. Set up your payment schedule through your provider.
  4. Learn more via the official portal: https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/life-income-fund.html