A Life Income Fund (LIF) or Locked-In Retirement Income Fund (LRIF), is a prescribed pay-out vehicle for Registered Pension Plan (RPP), Locked-In RRSP and/or Locked-In Retirement Account (LIRA) assets. Like an annuity, the lump sum rollover to the pay-out vehicle is tax-free and only the payments you actually receive are added to your taxable income.

It allows for regular payments to be made to you until the funds are exhausted or applied to buy an annuity. The rules for LIFs and LRIFs require that you withdraw a minimum amount of your money each year, subject to a prescribed maximum amount, and may also stipulate (according to applicable legislation) that you have to buy a life annuity no later than age 80.

• Flexibility to alter your income stream (i.e. increase or decrease the amount of your period payments or make unscheduled withdrawals)
• Assets continue to be invested according to your instructions and can be exposed to market fluctuations
• Flexibility to move your money between different investment options
• In the event of your death, the value will be paid to your beneficiary
• You can outlive your income