What is a Locked-In Retirement Fund (LIF)?

A LIF, or Locked-In Retirement Fund, is a result of participating in a pension plan in Canada and then transferring your pension value to a LIRA, and then convert to a LIF when you want to start drawing an income during your retirement years.

LIFs are regulated by the provincial government, and there are rules that must be followed in order to ensure that your savings are protected. There are a few things to keep in mind when paying down your LIF, such as the maximum amount that you can pay yourself each year, and the minimum amount that you must withdraw each year.

If you are thinking about opening a LIF, it is important to speak to a financial advisor to learn about how much to pay yourself during retirement.

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Always seek advice from your financial planner. If you are a member of one of the BC Public Sector Pensions plans, you can see what the Pension Corporation says about your situation. Their pages provide a detailed summary of your options.