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Life Income Fund (LIF)
A life income fund (LIF) acts
as an extension of a locked-in
retirement account (LIRA) . It allows you to periodically
withdraw a portion of your savings accumulated in a pension fund and
receive retirement income according to your needs. A LIF is similar to
a registered retirement
income fund (RRIF), except for the source of the funds and the payment
of a maximum annual income.
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Who Should Consider a LIF?
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Retirees 69 years of age or under.
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Persons wanting to retain a certain
amount of autonomy in the management of their investments.
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Features and Advantages
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Your protection against financial
market fluctuations may attain and even exceed 100% of the capital
invested. |
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You pay no surrender
fees for withdrawals made up to a maximum of 20% of the value
of your contract at the beginning of each year.
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You pay no annual administration fees.
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Amounts withdrawn are taxed according to the tax tables in effect.
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In certain provinces you can receive a temporary income before the
age of 65 years.
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You receive a life
income for as long as you live.
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You are required by law to withdraw a minimum
annual amount and a maximum annual amount from your LIF. However, it is
now possible to withdraw a higher annual income in exceptional situations.
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Products Available
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The LIF permits you to invest in the
following investment vehicles:
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Daily Interest Funds
For persons wishing to accumulate money to make investments and
receive interest payments on a daily basis.
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Ecoflex Investment
Funds
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A range of investment funds which offer a full guarantee of your capital and medium- to long-term growth potential. In addition, amounts generated by your investments, over and above your deposits, may also be protected.
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