Life income fund (LIF)
Transfer your money in a LIRA or LRSP to a life income fund (LIF) for your retirement income.
If you're a Desjardins member, book an appointment on AccèsD to open your LIF.
Not a member? Schedule a call to book an appointment.
What is a LIF?
A life income fund (LIF) is an extension of your locked-in retirement account (LIRA) or your locked-in retirement savings plan (LRSP). Money transferred to your LIF grows tax-free until withdrawal and gives you a source of retirement income.
You must transfer the funds in your locked-in savings plans to a LIF no later than the year you turn 71; otherwise they'll be added to your taxable income.
LIF benefits
Invest tax-free
Your LIF savings grow tax-free until you withdraw them.
Manage your retirement income
You can set the amount and frequency of your LIF withdrawals, subject to the minimum and maximum withdrawal limits based on your age and LIF's jurisdiction.
Protect your estate
Upon death, your LIF balance goes to your spouse or common-law partner tax-free, under certain conditions. If you don't have a spouse or common-law partner, the balance goes to your beneficiaries or estate.
How a LIF works
LIF eligibility
- You have money to transfer over, usually from a LIRA or LRSP
- You transfer the money before December 31 of the year you turn 71
- You're 55 or over if you're transferring money from a LIRA to a LIF in Ontario
LIF withdrawal rates
You need to withdraw a minimum amount from your LIF each year, in 1 or more installments. The amount is calculated in the same way as for a registered retirement income fund (RRIF). It's based on your LIF's value and your age or the age of your spouse or common-law partner.
For Quebec LIFs
Once you turn 55, you can withdraw as much as you want from your LIF.
For federal or Ontario LIFs
Once you turn 55, a portion of your savings can be unlocked. For the remainder, the maximum withdrawal amount is determined by the annual reference rate, which varies based on your LIF's jurisdiction.
Before the age of 55, whether you can withdraw from a locked-in plan depends on your jurisdiction.
LIF withdrawal tax
Withdrawals from your LIF are added to your taxable income. Any withdrawals over the minimum amount are subject to a withholding tax.
If your spouse or common-law partner is younger than you, you can use their age to calculate the minimum withdrawal amount. This way, you might be able to withdraw a lower amount and reduce your taxable income.
Investment options for a LIF
Find out which investments you can hold in your LIF.
Personalized Annuity Term Savings
Enjoy high, steady income from interest and capital payouts. Both your capital and interest are guaranteed.
Regular Savings Account
Save for short-term goals with no minimum deposit required.
Guaranteed fixed-rate investments (term savings)
Enjoy a known return on your investment from day one. Both your capital and interest are guaranteed.
Market-linked guaranteed investments
Harness the growth potential of stocks without risking your capital.
Desjardins Funds
Invest in innovative and competitive fund portfolios tailored to your profile.
Guaranteed Investment Funds Helios2 Contract
Earn interest while protecting your estate and your savings.
Interested in self-directed investing?
Whatever your level of investment knowledge, we offer everything you need to make informed decisions and invest on your own with confidence:
- No-fee online transactions for stocks and exchange-traded funds (ETFs)
- State-of-the-art trading platforms
- Comprehensive training
- Powerful analysis tools
FAQ
Yes, you must transfer your LIRA or LRSP funds to a LIF or use them to buy an annuity the year you turn 71. Otherwise, the total amount in your LIRA or LRSP will be added to your taxable income.
No, you can't contribute to a LIF. You can only transfer money to it from a LIRA or LRSP. Once you've transferred funds to a LIF, you can only make withdrawals.
If you want to transfer funds in your LIRA to a LIF in Ontario, you must be 55 or over to open a LIF. For other locked-in plans, you can open a LIF at any age, whenever you want retirement income. As long as there are funds in your LIF, you have a minimum and maximum amount you must withdraw each year.
For federal and Ontario LIFs, a portion of the funds can be unlocked, subject to certain conditions and limits. If you have a LIF in Quebec and are 55 and over, you'll no longer have a maximum withdrawal amount as of July 1, 2024.
Contact your advisor to come up with the best withdrawal strategy for you, based on all your retirement income sources.
Book an appointment to open your LIF
By phone
Montreal area:
514-224-7737 Phone number of customer service for the Montreal area. This link opens your phone app. (514-CAISSES)
Elsewhere in Canada:
1-800-224-7737 Phone number of customer service for Canada. This link opens your phone app. (1-800-CAISSES)
We can also call you when it's convenient.
How to open the LIF
1. Contact your advisor
Your advisor will discuss your retirement savings with you and help you open a LIF. You must convert your LIRA or LRSP to a LIF no later than the year you turn 71.
If you're not a Desjardins member, schedule a call to book an appointment.
2. Choose your investments
We'll help you choose the right investments for your LIF according to your goals and investor profile.
3. Plan your withdrawals
We'll also help you create a withdrawal plan to save on taxes and still achieve your goals. At the beginning of every year, we'll let you know the minimum and maximum amounts you can withdraw from your LIF.