Locked-In Retirement Income Fund (LRIF)

Upon retirement, a locked-in RRSP (originating from a pension plan) is converted to a LRIF (Locked-In Retirement Income Fund). A LIF is a form of RRIF, but since the funds originated from a pension plan, there are additional restrictions (these vary from province to province).

Two major differences between a LRIF and a RRIF are:

• Although both require a minimum payment amount be withdrawn out of the plan each year, the LRIF imposes a maximum annual withdrawal.
• With a RRIF, you control the investments during your entire lifetime. With a LRIF (except in Quebec) you must purchase an immediate life annuity, which must include a 60% spousal survivor benefit, unless the spouse waives this requirement, by the end of the calendar year of your 80th birthday.

For pension plan funds regulated by Ontario, Alberta, Sasketchawan or Manitoba, you may also transfer your locked-in RRSP or LIRA to a Life Retirement Income Fund (LRIF). There is a minimum and maximum withdrawal limitation.

However, an LRIF does not require you to purchase a life annuity at age 80. You may continue to manage the investments in your LRIF for as long as you live.

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Click here for information on how to open or transfer in your LRIF account to GP Wealth Management

To learn more about retirement planning, click here.