LIF Withdrawals
A Life Income Fund (LIF) is a type of Registered Retirement Income Fund (RRIF) established under the Income Tax Act (Canada), with the added provincial or federal pension act requirements associated with pension funds.
As a result, the minimum annual withdrawals from an LIF are the same as for an RRIF, but the pension legislation dictates that a maximum annual withdrawal limit be set according to the governing provincial or federal pension legislation.
The maximum withdrawal limits for federal LIFs in 2018 have been set using the following long-term interest rate assumptions:
- 2.16% for the first 15 years, and
- 6.00% for the years remaining to the end of the year in which the LIF owner attains 90 years of age
If you’re looking for specific numbers that apply to your LIF, try our
Life Income Fund Withdrawal Calculator
The table below outlines the minimum and maximum amount of money that can be withdrawn from an LIF for 2018
| Age on
January 1st |
Minimum
Withdrawal |
Maximum
Withdrawal |
Age on
January 1st |
Minimum
Withdrawal |
Maximum
Withdrawal |
| 50 | 2.5000% | 4.3850% | 76 | 5.9800% | 8.1769% |
| 51 | 2.5600% | 4.4197% | 77 | 6.1700% | 8.7167% |
| 52 | 2.6300% | 4.4571% | 78 | 6.3600% | 9.3472% |
| 53 | 2.7000% | 4.4975% | 79 | 6.5800% | 10.0930% |
| 54 | 2.7800% | 4.5411% | 80 | 6.8200% | 10.9887% |
| 55 | 2.8600% | 4.5883% | 81 | 7.0800% | 12.0843% |
| 56 | 2.9400% | 4.6393% | 82 | 7.3800% | 13.4547% |
| 57 | 3.0300% | 4.6947% | 83 | 7.7100% | 15.2177% |
| 58 | 3.1300% | 4.7549% | 84 | 8.0800% | 17.5696% |
| 59 | 3.2300% | 4.8203% | 85 | 8.5100% | 20.8638% |
| 60 | 3.3300% | 4.8917% | 86 | 8.9900% | 25.8070% |
| 61 | 3.4500% | 4.9698% | 87 | 9.5500% | 34.0482% |
| 62 | 3.5700% | 5.0553% | 88 | 10.2100% | 50.5342% |
| 63 | 3.7000% | 5.1492% | 89 | 10.9900% | 100.0000% |
| 64 | 3.8500% | 5.2526% | 90 | 11.9200% | 100.0000% |
| 65 | 4.0000% | 5.3668% | 91 | 13.0600% | 100.0000% |
| 66 | 4.1700% | 5.4934% | 92 | 14.4900% | 100.0000% |
| 67 | 4.3500% | 5.6344% | 93 | 16.3400% | 100.0000% |
| 68 | 4.5500% | 5.7919% | 94 | 18.7900% | 100.0000% |
| 69 | 4.7600% | 5.9688% | 95 | 20.0000% | 100.0000% |
| 70 | 5.0000% | 6.1684% | 96 | 20.0000% | 100.0000% |
| 71 | 5.2800% | 6.3952% | 97 | 20.0000% | 100.0000% |
| 72 | 5.4000% | 6.6545% | 98 | 20.0000% | 100.0000% |
| 73 | 5.5300% | 6.9534% | 99 | 20.0000% | 100.0000% |
| 74 | 5.6700% | 7.3010% | 100 | 20.0000% | 100.0000% |
| 75 | 5.8200% | 7.7095% |
Note: If the minimum withdrawal amount specified in the Income Tax Regulations exceeds the maximum withdrawal amount permitted under subsection 20.1 of the Pension Benefits Standards Regulations, 1985 (determined in accordance with the above table), the maximum withdrawal amount can be equal to the minimum withdrawal amount.
Additional notes:
- To calculate the actual minimum and maximum dollar amounts to be withdrawn the percentages in the table are multiplied by the LIF’s market value on January 1st in the year of the intended withdrawal.
- If the LIF is established at anytime during the calendar year, the percentage of the market value of the LIF must be multiplied by the number of months remaining in that year divided by 12, with any part of an incomplete month counting as one full month.
- Here is a link to the Office of the Superintendent of Financial Institutions Canada with the updated minimum withdrawal rates.