LIF: Life Income Fund | National Bank

LIFs at a glance

What is a Life Income Fund (LIF)?

A LIF¹ is a registered fund that acts as an extension of your locked-in retirement account (LIRA) or supplemental pension plan. Funds transferred to a LIF are sheltered from tax and can be withdrawn to provide retirement income.

Useful if you’re looking to:

Access funds in a LIRA as you approach retirement
Withdraw regular amounts each year
Choose your payment frequency
Let your investments grow tax-free ahead of your retirement

Age limit

71 years

You must transfer the funds from your LIRA to a LIF no later than December 31 of the year you turn 71.

Minimum annual withdrawal

Varies depending on your age

The government requires you to make a minimum withdrawal each year. The percentage used to calculate the amount increases with your age. Withdrawals that exceed the minimum amount are taxed as income.

Maximum annual withdrawal

Varies depending on the province²

The maximum withdrawal you can make is calculated based on your age, the balance of your LIF, and the LIF reference rate that is set each year. There is an annual limit on how much you can withdraw from your LIF, unlike a RRIF.

How to open a LIF account at National Bank

If you’d like to start investing, there are two solutions available to you.

Visit a branch

If you need support, speak with one of our advisors to find the solution that best suits your needs.

Make an appointment

Open an online brokerage account

Are you a self-directed investor? Fill out the secure online form to start contributing to your LIF account.

Open an account

Learn more about National Bank Direct Brokerage

Tip

Approaching retirement? It's time to max out your RRSP and use up any remaining contribution room!

Another great option

TFSA

Earn tax-free interest on your savings and access your funds any time.

See our TFSAs

See all our solutions

Ready to talk about retirement?

Speak to an Investment and Retirement Specialist to find the solution that's right for you.

Make an appointment

1-888-270-3941
Monday to Thursday,
8 a.m. to 6 p.m. (ET)
Friday, 8 a.m. to 5 p.m. (ET)

Find answers

Little details that matter

1. The LIF is subjected to provincial or federal legislation that governed the member’s rights at the time the member’s active membership in the plan was terminated or the legislation specified in the plan, as well as the Income Tax Act.

2. LIF Quebec:

As of January 1, 2025, LIF can no longer be transferred to an RRSP or RRIF.

Please note that from the age of 55:

You are no longer subject to a maximum withdrawal, allowing you to withdraw any amount you want.
You can now request payment of all or part of the balance of your LIF in one or more installments.

You can find more information on the Retraite Québec website.

For LIF minimum and maximum withdrawal amounts, see our detailed table.

To learn about LIF fees, please consult the Fee Guide – Personal Banking Solutions under Other Fees.

To learn about our process for notifying you of fee increases or new fees, please refer to the Interest and Fees section of our Personal Bank Holding Agreement.

If you are dissatisfied with our service, please consult our Complaint settlement page.

Learn more about the LIF on page 7 of the Account application form.

Life Income Funds (LIFs)