Life income fund (LIF)
Retirement income and tax-sheltered investment growth
You’ve saved for retirement through your workplace plan for years. If you're planning to retire soon, you may need to consider your options for converting money from your pension plan or locked-in retirement account into an income stream to meet your needs now and in retirement. With a life income fund (LIF) from Manulife, draw an income, grow your investments tax-free and pay tax only on the money you take out.
Choosing to set up a Manulife LIF provides you with tax-free growth and investment choice
Transfer your locked-in funds from a pension plan (if allowed), locked-in RRSP or Locked-In Retirement Account to a LIF that has some similarities to a Registered Retirement Income Fund (RRIF)
Control your investments—you decide how you invest your money
Control your income—choose the right income payment frequency for you
Maximize your tax deferral since you only pay tax on the money you take out
Name a beneficiary to receive your money following your death, subject to applicable pension legislation
Ready to invest?
Speak to your advisor to discuss investment options to help meet your needs. If you don’t have an advisor, we can help you find one.
Frequently asked questions
A LIF is a registered retirement income fund (RRIF) that contains pension funds. It operates like a RRIF but has additional rules associated with it based on the pension jurisdiction of the pension plan that the funds were transferred from.
The pension legislation of most pension jurisdictions allows you to transfer your locked-in funds (like funds from a pension plan when you terminate employment, locked-in RRSP or Locked-In Retirement Account) to a LIF. A LIF can offer investment choice with a set minimum and maximum payment each year.
- You can purchase a life annuity at any time, but are not required to, except in Newfoundland and Labrador where the LIF matures at age 80. Any funds remaining in it would be used to purchase a life annuity.
- LIFs are not available in Prince Edward Island as the province does not currently have pension legislation
- LIFs are not available for purchase under Saskatchewan pension legislation for funds being transferred from a pension plan or LIRA; however there are other options in Saskatchewan when you want to transfer your retirement savings to an income stream
- In all other pension jurisdictions in which LIFs are offered, your LIF can continue past age 80 with no maturity date