A life income fund (LIF) is one type of registered retirement income fund (RRIF). The fund is an extension of a locked-in retirement account (LIRA). LIF allows you to annually withdraw a certain amount of your accumulated pension fund as well as receive regular retirement income as per your needs. The difference between LIF and RRIF is the source of funds and a pre-set maximum annual income.
LIF Income Fund is meant for;
- Any retiree aged 71 or below
- Any person who wish to have a certain amount of control over their investments
The law requires LIF members to withdraw a minimum and a maximum annual income from your LIF. However, under certain circumstances, you may withdraw a higher annual income.