Need to open a Life Income Fund (LIF) to receive income originating from Registered Pension Plan? Open a League Savings and Mortgage Life Income Fund. A Life Income Fund (LIF) is like a Retirement Income Fund (RIF) designed to provide an income with restrictions on the maximum amount that can be withdrawn each year based on the pension jurisdiction.
- A LIF allows the plan holder flexibility to control the investment of their funds, as well as the frequency and amount of income they receive (within legislated minimum and maximum amounts).
- The balance in a LIF must be used to purchase an immediate Life Annuity by the end of the year the plan holder reaches age 80 under certain jurisdictions.
- In the event of the death of a LIF owner, the balance of their fund is available to their spouse, beneficiary, or estate.
- Depending upon the source of the pension funds, some LIFs are subject to Federal regulation while others are under provincial jurisdiction. While there is consistency in many of the requirements, there are some significant differences between the various jurisdictions.
Ask for information on transferring an existing LIF from another institution. At League Savings and Mortgage, our qualified staff will be pleased to discuss any aspect of your retirement options and explain our Life Income Fund in more detail.