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Life income fund (LIF)

Transfer your money in a LIRA or LRSP to a life income fund (LIF) for your retirement income.

If you're a Desjardins member, book an appointment on AccèsD to open your LIF.

Not a member? Schedule a call to book an appointment.

What is a LIF?

A life income fund (LIF) is an extension of your locked-in retirement account (LIRA) or your locked-in retirement savings plan (LRSP). Money transferred to your LIF grows tax-free until withdrawal and gives you a source of retirement income.

You must transfer the funds in your locked-in savings plans to a LIF no later than the year you turn 71; otherwise they'll be added to your taxable income.

LIF benefits

Invest tax-free

Your LIF savings grow tax-free until you withdraw them.

Manage your retirement income

You can set the amount and frequency of your LIF withdrawals, subject to the minimum and maximum withdrawal limits based on your age and LIF's jurisdiction.

Protect your estate

Upon death, your LIF balance goes to your spouse or common-law partner tax-free, under certain conditions. If you don't have a spouse or common-law partner, the balance goes to your beneficiaries or estate.

How a LIF works

LIF eligibility

  • You have money to transfer over, usually from a LIRA or LRSP
  • You transfer the money before December 31 of the year you turn 71
  • You're 55 or over if you're transferring money from a LIRA to a LIF in Ontario

LIF withdrawal rates

You can make multiple withdrawals from your LIF each year. However, the total amount you withdraw must be between the minimum and maximum required by law. The amount is based on your LIF's value and your age or the age of your spouse or common-law partner.

For minimum withdrawals, the percentage you withdraw from your LIF is the same as for a registered retirement income fund (RRIF).

For maximum withdrawals, the percentage is determined by the annual reference rate, which varies based on your LIF's jurisdiction.

For federal and Ontario LIFs, a portion of the funds can be unlocked, subject to certain conditions and limits.

Good to know

If you have a LIF in Quebec and are 55 or over, you'll no longer have a maximum withdrawal amount as of July 1, 2024. You can then withdraw as much as you want each year from your LIF.

LIF withdrawal tax

Withdrawals from your LIF are added to your taxable income. Any withdrawals over the minimum amount are subject to a withholding tax.

If your spouse or common-law partner is younger than you, you can use their age to calculate the minimum withdrawal amount. This way, you might be able to withdraw a lower amount and reduce your taxable income. 

How to open the LIF

1. Contact your advisor

Your advisor will discuss your retirement savings with you and help you open a LIF. You must convert your LIRA or LRSP to a LIF no later than the year you turn 71.

If you're not a Desjardins member, schedule a call to book an appointment.

2. Choose your investments

We'll help you choose the right investments for your LIF according to your goals and investor profile.

3. Plan your withdrawals

We'll also help you create a withdrawal plan to save on taxes and still achieve your goals. At the beginning of every year, we'll let you know the minimum and maximum amounts you can withdraw from your LIF.

Investment options for a LIF

Find out which investments you can hold in your LIF.

Personalized Annuity Term Savings

Enjoy high, steady income from interest and capital payouts. Both your capital and interest are guaranteed.

Learn more about Personalized Annuity Term Savings.

Regular Savings Account

Save for short-term goals with no minimum deposit required.

Learn more about Regular Savings Accounts.

Guaranteed fixed-rate investments (term savings)

Enjoy a known return on your investment from day one. Both your capital and interest are guaranteed.

Learn more about Guaranteed fixed-rate investments (term savings)

Market-linked guaranteed investments

Harness the growth potential of stocks without risking your capital.

Learn more about Market-linked guaranteed investments.

Desjardins Funds

Invest in innovative and competitive fund portfolios tailored to your profile. 1

Learn more about Desjardins Funds.

Guaranteed Investment Funds Helios2 Contract 

Earn interest while protecting your estate and your savings.

Learn more about Guaranteed Investment Funds Helios2 Contract.

Switch to online brokerage

Want to explore online brokerage to invest on your own? Whatever your level of investment knowledge, we offer everything you need to make informed decisions and invest with confidence: 

  • No-fee online transactions for stocks and exchange-traded funds (ETFs)
  • State-of-the-art trading platforms
  • Comprehensive training
  • Powerful analysis tools

Respon­sible invest­ment pays off

Commit to a sustainable and equitable economy by investing in businesses that value the environment, the community and diversity. With our socially responsible investments, you benefit from good potential returns while taking action for the future.


Do I have to convert my LIRA or LRSP to a LIF when I turn 71?

Yes, you must transfer your LIRA or LRSP funds to a LIF or use them to buy an annuity the year you turn 71. Otherwise, the total amount in your LIRA or LRSP will be added to your taxable income.

Can I contribute to a LIF?

No, you can't contribute to a LIF. You can only transfer money to it from a LIRA or LRSP. Once you've transferred funds to a LIF, you can only make withdrawals.

When can I start making withdrawals from my LIF?

If you want to transfer funds in your LIRA to a LIF in Ontario, you must be 55 or over to open a LIF. For other locked-in plans, you can open a LIF at any age, whenever you want retirement income. As long as there are funds in your LIF, you have a minimum and maximum amount you must withdraw each year.

For federal and Ontario LIFs, a portion of the funds can be unlocked, subject to certain conditions and limits. If you have a LIF in Quebec and are 55 and over, you'll no longer have a maximum withdrawal amount as of July 1, 2024.

Contact your advisor to come up with the best withdrawal strategy for you, based on all your retirement income sources.

Book an appointment to open your LIF

On AccèsD

Book an appointment on AccèsD if you're a member, and meet with an advisor online, in person or over the phone.

Explore other useful savings plans for retirement


A registered retirement income fund (RRIF) converts some or all of your RRSP funds into retirement income.
Learn more about RRIF


A locked-in retirement account (LIRA) lets you earn interest tax-free on your funds from your former employer’s pension plan.
Learn more about LIRA
Desjardins Funds are not guaranteed, their value fluctuates frequently, and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Desjardins Funds are offered by registered dealers.