A retirement income fund that is established by the transfer of locked-in funds from a Registered Pension Plan (RPP), Locked-in Retirement Savings Plan (LRSP), Locked-in Retirement Account (LIRA) and in some cases a Locked-in Retirement Income Fund (LRIF).
Commonly known as a LIF, this is one of the options available to locked in Registered Pension Plan (RPP) holders for income pay out as opposed to Registered Retirement Savings Plan (RRSP) holders choice of pay out through Registered Retirement Income Funds (RRIF). A LIF must be converted to a unisex annuity by the time the holder reaches age 80.
an appealing retirement income alternative for people who are liquidating their registered pension plans or locked-in retirement accounts
A type of Registered Retirement Income Fund (RRIF) created for LIRAs (see definition below) to provide retirement income. You make all the investment decisions with an LIF, but you must withdraw with set parameters each year after you reach retirement age. Amounts in an LIF are tax-sheltered until withdrawn.
The locked-in life income fund (LIF) is to the locked-in retirement account (LIRA) what the registered retirement income fund (RRIF) is to the registered retirement savings plan (RRSP). The only difference between these two types of contracts is the maximum withdrawal limit imposed on locked-in plans. Like the RRIF, the locked-in LIF requires a minimum withdrawal, but it also imposes a maximum withdrawal per year. Certain provincial regulations require that when the annuitant reaches the age of 80, the minimum for the year be paid out of the LIF and the remaining funds used to purchase a life annuity.
A Life Income Fund and a Lock-In Retirement Income Fund are both types of personal retirement income funds. You can open these types of funds with the money transferred out of your pension plan when you leave your company or retire. They differ from a LIRA (see below) in that they give you a regular flow of income out of the account. Both have rules about minimum and maximum withdrawals.
A maturity option available for LIRA or LIRRSP assets to provide a stream of income at retirement. AGF offers LIF plans as an alternative to an annuity, which allows LIRA or LIRRSP plan holders to retain their AGF mutual funds until the end of the year in which they turn 80 (unless otherwise stated in that provinces' legislation for locked-in plans), and have flexible payments options. By the end of the first full calendar year the LIF plan holder must withdraw their first annual minimum payment (same as the RRIF minimum). LIF plans also have an annual maximum payment.
A retirement income option created for Locked-In RSPs and other registered pension plan savings to provide retirement income.
This is a special type of retirement income account that allows an individual some of the flexibility of a Locked-in Retirement Income Fund up to age 80, and then requires that the individual purchase a life annuity. There are minimum and maximum amounts that may be withdrawn up to age 80. These amounts are designed to make sure that (i) the individual draws income from the fund from the date the LIF is purchased to age 80, (ii) a reasonable level income is provided annually throughout the individual's entire retirement, and (iii) there is enough money at age 80 to continue monthly payments of the same amount as the individual received before age 80, through the purchase of a life annuity. Some provinces no longer require the purchase of an annuity at age 80.
This is a tax-deferred retirement savings vehicle - similar to a registered retirement income fund - for locked-in RRSP funds or transfers directly from registered pension plans (such as HOOPP.)
When your Locked-In Retirement Account (LIRA) matures, you have the option of converting it to a Life Income Fund (LIF).
A personal retirement income fund offered by financial institutions. Similar to a Registered Retirement Income Fund (RRIF). A LIF can be purchased with pension funds when a member leaves or retires. A federal LIF is used to provide a regular retirement income, and is subject to minimum and maximum withdrawal limits. LIFs are governed by the Pension Benefits Standards Act, 1985 and the Income Tax Act (Canada) ( Income Tax Act).
A form of planned gift that is set up, invested, and managed by MIT, where up to two beneficiaries receive payments for life or for a pre-specified term of years. Read more about gift planning.