Registered Retirement Income Options
Life Income Funds (LIF)
A LIF acts as a RRIF from the year it is established until the member turns age 80 at which time it must be converted to a Life Annuity. The LIF can be converted to a Life Annuity prior to age 80.
The primary benefit of a LIF is that it provides you with some of the flexibility of a RRIF early in retirement and guarantee a fixed income later in life. Additional benefits are listed below:
- Ability to transfer a LIF from one issuer to another.
- Ability of preserving capital and using the LIF as a more effective estate builder.
- Ability to delay the purchase of an annuity until a time when perhaps annuity yields are more favourable.
