LIF Withdrawal Calculator

A Life Income Fund (LIF) is a registered retirement income account that holds locked-in pension money — typically funds transferred out of an employer pension plan into a LIRA, then converted to a LIF for income. Unlike a RRIF, a LIF has both a minimum and a maximum annual withdrawal. The maximum exists to make the money last to at least age 90.

The LIF minimum is identical to the RRIF minimum for your age: your LIF balance on January 1 multiplied by the CRA prescribed minimum factor. For ages under 71 the factor is 1 divided by (90 minus your age); from age 71 the CRA publishes a fixed table (5.28% at 71) that rises with age to 20% at age 95 and older.

For federally regulated (PBSA) LIFs the maximum is a percentage factor by age applied to the January 1 balance, reset each year with a reference rate — for 2026 the federal reference rate is 3.49%, giving a maximum of about 6.03% at age 65. Ontario and British Columbia use their own tables built on a 6% floor rate instead, so their maximum is higher (about 7.38% and 7.38% at 65), and both let you take the previous year's investment earnings if that is larger. Nova Scotia uses its own Schedule 5 factors (about 7.20% at 65) and Newfoundland and Labrador's Directive No. 5 formula, which gives the same result as Ontario (about 7.38% at 65). Quebec has no LIF maximum from age 55 (since January 1, 2025), and Saskatchewan lets locked-in money move to a prescribed RRIF from 55. Alberta, Manitoba and the other jurisdictions use their own rules.

Yes. Every dollar withdrawn from a LIF is fully taxable income in the year you receive it and is reported on a T4RIF slip. As with a RRIF, the minimum amount is exempt from withholding tax, but any amount above the minimum (up to the LIF maximum) is subject to withholding tax at source outside Quebec.

Several jurisdictions allow a one-time unlock of up to 50% into an RRSP or RRIF: federally regulated money when you open a restricted LIF (RLIF) at 55 or later, and Ontario within 60 days of transferring into the LIF. On top of that, small balances, shortened life expectancy, financial hardship and non-residency can each unlock additional amounts. The exact rules and percentages vary by pension jurisdiction — confirm with your regulator.

Federally regulated (PBSA) plans use the federal reference-rate table shown above. Ontario and British Columbia publish their own tables with a 6% floor rate (about 7.38% and 7.38% at 65), and Nova Scotia and Newfoundland and Labrador have their own rules (about 7.20% and 7.38% at 65); this calculator uses all four. Quebec removed the LIF maximum from age 55 on January 1, 2025, and Saskatchewan locked-in money can move to a prescribed RRIF with no maximum from 55. Nova Scotia and Newfoundland and Labrador use their own rules, which this calculator applies. For Alberta, Manitoba and the other jurisdictions the calculator shows the federal table as an indicative maximum — confirm the exact figure with your regulator.

Generally yes. In the year you open a LIF (or transfer money in), the maximum is prorated for the number of months remaining in the year, and for many plans the minimum is nil in that first partial year. From the next full calendar year onward, both the minimum and maximum apply to the January 1 balance.