LIF Withdrawal Calculator

A Life Income Fund (LIF) holds money that came out of a registered pension plan. When you leave an employer with a defined-contribution (or commuted defined-benefit) pension, those funds are "locked in" — first in a LIRA (Locked-In Retirement Account), then converted to a LIF when you want income. Locked-in rules exist to make sure pension money actually lasts through retirement.

Minimum = the RRIF minimum: the LIF minimum withdrawal is calculated exactly like a RRIF — your January 1 balance multiplied by the CRA prescribed factor for your age. Under 72 the factor is 1 ÷ (90 − age); from 72 it follows the CRA table and climbs to 20% at age 95 and older. Like a RRIF, the minimum is exempt from withholding tax.

Maximum is the LIF-only twist: unlike a RRIF, a LIF caps how much you can take each year. For federally regulated plans (under the PBSA) and the harmonized provinces — Ontario, Nova Scotia, Newfoundland and Labrador, and British Columbia — the maximum is a percentage factor by age applied to your January 1 balance. The factor is reset every January using a reference rate. For 2026 the federal reference rate is 3.49%, which gives a maximum of about 6.03% at age 65 and rises with age until the balance is fully payable around age 89–90.

Provincial variation: not every province follows the federal table. Alberta, Quebec, Manitoba and Saskatchewan set their maximum with different formulas, and a few allow a higher first-year or temporary-income option. For those jurisdictions this calculator shows an indicative maximum and you should confirm the exact figure with your financial institution or provincial pension regulator.

Unlocking: most jurisdictions let you unlock a portion of a LIF (commonly up to 50%) into a RRSP or RRIF on a one-time basis, or unlock small balances and amounts based on financial hardship, shortened life expectancy or non-residency. Rules differ by jurisdiction. Unlocked money loses the maximum-withdrawal cap but is still fully taxable when withdrawn.