Life Income Funds are tax-deferred plans that pay out your registered pension plan, Locked-In RRSP or Locked-In Retirement Account assets over a number of years. With a LIF, you control your investment options but payments are determined by a government formula.
Buying Life Income Funds (LIF)
Do you currently have an LRIF or an LIRA and are concerned of outliving your retirement income. All is not lost, you may still transfer the commuted value of the remaining funds to an LIF providing you with the ability to extend the length of time these funds are paid out to you.
Life Income funds should be considered past the age of 70. At this time you would be able to determine how much money you would need to enjoy your retirement. Life Income funds can be kept past the age of 80.
If you chose the maximum income payment each year, the money in your new income fund will be used up by the age of 90.