Life Income Funds (LIF), like group Registered Retirement Income Funds (RRIF), are designed to provide you with retirement income for your whole life.
LIFs offer tax-sheltered growth potential for the money you've transferred from your:
Advantages of a group LIF
- The money you invest and your investment earnings remain tax-sheltered until you take them out – just like in an RRSP
- Guaranteed lifetime income
- Locked-in funds can be transferred from a DCPP or an SPP
- Protect against inflation, since you can decide how much to withdraw, based on your needs
- Your beneficiary will continue to receive payments after you die and, depending on their age and the legislation governing the plan, they can then transfer the money to an RRSP, a LIRA, a RRIF, another LIF or an annuity
Features of a group LIF
LIFs include certain restrictions designed to guarantee a lifetime income:
- There's an annual minimum and maximum that can be withdrawn
- Locked-in funds must be converted to a LIF by December 31 of the year you turn 71
Which type of retirement savings plan is right for you? Check out the Retirement income plan table.
This text is for information purposes only. Refer to your policy for all conditions, exclusions and restrictions.