Locked-in Retirement Income Fund (LRIF) (until 2009)

What's a Locked-in Retirement Income Fund?

LRIF is a type of RRIF plan that helps you turn locked-in pension funds into retirement income

What is it for?

It’s used when you transfer savings from a locked-in pension plan, such as after leaving a job. For example:

You leave your company pension and want to manage your own retirement income.
You need a steady income but restricted from withdrawing everything at once.

How it works?

An LRIF works by allowing you to withdraw income annually within government-mandated minimum and maximum limits. The funds originate from locked-in pension savings, ensuring they are used for retirement purposes. Each year, you can decide how much to withdraw within the allowed range, giving you flexibility while preserving the fund for your lifetime.

Please note!

Currently, New LRIFs are only available in Newfoundland and Labrador. In Ontario, you could open a New LRIF up until 2009, they are no longer available due to legislative changes. Existing Ontario LRIFs are subject to the rules for New Ontario LIFs.

Get to know the LRIF

Income source

Converts locked-in pension funds into retirement income

For whom

For Canadians aged 55 and above

Withdrawal

Withdraw within set minimum and maximum limits annually

Growth

Funds can remain invested while generating income

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Featured rates

Term	Interest rate
Savings	0.60%
1 year	3.05%
2 years	3.15%
3 years	3.15%
4 years	3.15%
5 years	3.30%

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Questions? We got answers!

Browse more FAQs

What is the difference between an LRIF and LIF?

An LRIF (Life Retirement Income Fund) and LIF (Life Income Fund) are both used to convert pension funds into income for retirement, but the key difference lies in their withdrawal rules. An LIF generally allows more flexibility in withdrawals compared to an LRIF, which has stricter limits on the amount you can withdraw each year. The LIF is designed to provide income for life, while the LRIF has a maximum limit on withdrawals, which may not last as long as the LIF.

Can I set up a LRIF if I am under the retirement age?

No, you cannot set up a Locked Retirement Income Fund (LRIF) until you reach the retirement age set by your pension plan. Typically, this is around age 55, but it depends on the rules of the pension plan you are transferring funds from. Until then, your pension funds will remain locked in and you may need to explore other retirement income options.

How are LRIF withdrawals taxed?

LRIF withdrawals are subject to income tax at your marginal tax rate, similar to other retirement income. The amount you withdraw will be added to your total taxable income for the year, and the tax will be calculated based on your overall income. It’s important to consider the tax implications when planning your withdrawals to avoid any surprises at tax time.

What happens if I don't make withdrawals from my LRIF each year?

If you don’t make the required minimum withdrawals from your LRIF each year, you may face penalties. The amount you are required to withdraw is set by your pension plan, and failing to do so could result in tax consequences or additional fees. It’s important to ensure that you make at least the minimum withdrawal to avoid these issues.

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