What is a Locked-In Retirement Fund (LIF)?
A LIF, or Locked-In Retirement Fund, is a result of participating in a pension plan in Canada and then transferring your pension value to a LIRA, and then convert to a LIF when you want to start drawing an income during your retirement years.
LIFs are regulated by the provincial government, and there are rules that must be followed in order to ensure that your savings are protected. There are a few things to keep in mind when paying down your LIF, such as the maximum amount that you can pay yourself each year, and the minimum amount that you must withdraw each year.
If you are thinking about opening a LIF, it is important to speak to a financial advisor to learn about how much to pay yourself during retirement.
You may enjoy these other articles
Can I split my retirement income with my spouse to save taxes?
Many Canadians wonder if they can pay less tax in retirement by splitting their income with their spouse. The basic answer is yes, and here's how it works.
What do I need to know about Locked-In Retirement Funds (LIFs)?
Locked-In Retirement Funds (LIFs) are a type of retirement savings account that is offered by financial institutions in Canada. They are similar to Registered Retirement Savings Plans (RRSPs), but have some key differences.