This page sets out the minimum and maximum you can withdraw from a Life Income Fund each year, by jurisdiction, and the ways LIF money can be unlocked. How a LIF works overall is in the LIF guide; every locked-in account guide is listed in the RRSP, RRIF, LIF and LIRA directory.
What Is a LIF?
A Life Income Fund (LIF) is a registered retirement income account that holds locked-in pension funds and converts them into a stream of retirement income. If you left a workplace pension before retirement, your commuted pension value was likely transferred into a Locked-In Retirement Account (LIRA). When you are ready to draw income (and no later than age 71), that LIRA converts into a LIF.
The defining feature of a LIF is that it operates under both a minimum and a maximum annual withdrawal limit. The minimum ensures you draw income rather than accumulate it tax-sheltered indefinitely. The maximum is the key distinction from a RRIF: it caps how much you can take each year, so the fund is designed to last your lifetime rather than be depleted quickly. These limits are set by federal or provincial pension legislation, not by CRA, which is why the rules vary across the country.
| Feature | Details |
|---|---|
| Source of funds | LIRA, locked-in RRSP, pension transfer |
| Minimum withdrawal | Yes, same formula as RRIF |
| Maximum withdrawal | Yes, unique to LIF |
| Tax treatment | Withdrawals fully taxable as income |
| Provincial jurisdiction | Rules vary significantly by province |
LIF Minimum Withdrawal Rates (2026)
LIF minimums follow the same schedule as RRIF minimums. They are calculated as a percentage of the account value at January 1 of each year. The percentage increases with age, ensuring the fund is gradually drawn down over retirement.
You must take at least the minimum by December 31 each year. There is no CRA penalty tax for missing it, unlike the 1%/month penalty that applies to RRSP, TFSA, FHSA, and RESP over-contributions, but in practice your financial institution will typically distribute the minimum amount automatically before year-end if you haven’t already withdrawn it, since the plan generally must pay out at least the minimum each year to remain a valid LIF. It’s still worth setting up automatic withdrawals so the timing and amount are on your own terms.
| Age | Prescribed Factor (All Other RRIFs) |
|---|---|
| 55 | 2.86% |
| 60 | 3.33% |
| 65 | 4.00% |
| 70 | 5.00% |
| 71 | 5.28% |
| 75 | 5.82% |
| 80 | 6.82% |
| 85 | 8.51% |
| 90 | 11.92% |
| 95 or older | 20.00% |
For age 70 or younger: 1 / (90 - age). Source: Canada Revenue Agency – Chart: Prescribed factors. The factor for all other RRIFs applies to virtually every RRIF opened after 1992. Separate factors for qualifying RRIFs (ages 71 to 78) apply only to RRIFs that were qualifying RRIFs at the end of 1992, and the pre-March 1986 category is a legacy case.
In the year of conversion from LIRA to LIF, no minimum is required. The first mandatory minimum withdrawal applies the following calendar year.
LIF Maximum Withdrawal Rates (2026)
The maximum withdrawal rate is where LIFs differ from RRIFs. Under the Pension Benefits Standards Regulations, 1985, the maximum is calculated using the monthly average yield on Government of Canada marketable bonds with a maturity over 10 years, as published by the Bank of Canada (Series V122487), for the preceding November, not a CRA rate. The November 2025 rate was 3.49%, which determines the 2026 maximums. Higher rates produce higher maximums; lower rate environments produce tighter caps.
The table below shows the federal maximum rates for 2026, sourced from OSFI. Your age is measured on December 31, 2025 (the preceding year). This table applies to federally-regulated LIFs only; most provinces use a different, higher formula. See the provincial section below for Alberta, BC, Ontario, New Brunswick, Newfoundland and Labrador, Saskatchewan, Manitoba, Nova Scotia, and Quebec.
| Age on Dec 31 of prior year | Federal Maximum % (2026) |
|---|---|
| 55 | 5.2096% |
| 56 | 5.2637% |
| 57 | 5.3224% |
| 58 | 5.3861% |
| 59 | 5.4552% |
| 60 | 5.5304% |
| 61 | 5.6125% |
| 62 | 5.7022% |
| 63 | 5.8005% |
| 64 | 5.9084% |
| 65 | 6.0272% |
| 66 | 6.1586% |
| 67 | 6.3042% |
| 68 | 6.4662% |
| 69 | 6.6474% |
| 70 | 6.8508% |
| 71 | 7.0804% |
| 72 | 7.3413% |
| 73 | 7.6397% |
| 74 | 7.9836% |
| 75 | 8.3837% |
| 76 | 8.8423% |
| 77 | 9.3729% |
| 78 | 9.9935% |
| 79 | 10.7287% |
| 80 | 11.6128% |
| 81 | 12.6955% |
| 82 | 14.0512% |
| 83 | 15.7970% |
| 84 | 18.1280% |
| 85 | 21.3952% |
| 86 | 26.3008% |
| 87 | 34.4831% |
| 88 | 50.8575% |
| 89 or older | 100.0000% |
Source: Office of the Superintendent of Financial Institutions (OSFI) – Life Income Funds, Restricted Life Income Funds, and Variable Benefits Accounts. View source. Nov 2025 Bank of Canada Series V122487 rate (10yr+ GoC bonds): 3.49%, used for the first 15 years of retirement; fixed 6.00% assumption used for the years remaining to age 90. Applies to federally regulated LIFs, RLIFs and variable benefit accounts, including those in the territories. Provincially regulated LIFs use their own province's table.
How the Maximum Is Calculated
- The minimum uses the RRIF factor for your age.
- The maximum comes from the table of the jurisdiction that regulates the pension (federal, or the province).
- Quebec has no maximum from age 55.
- In the first year the maximum is prorated by the months remaining.
The maximum dollar withdrawal is the formula-based percentage applied to your January 1 LIF balance. The percentage is determined by your age (measured on December 31 of the prior year) and the November Bank of Canada Series V122487 rate. The maximum is calculated under the Pension Benefits Standards Regulations, 1985, not the Income Tax Regulations, which govern only the minimum.
Example (federally-regulated LIF): At age 70 on December 31, 2025 with a LIF balance of $300,000 at January 1, 2026:
| Factor | Value |
|---|---|
| LIF value (Jan 1) | $300,000 |
| Maximum rate at age 70 | 6.8508% |
| Maximum withdrawal | $20,552 |
| Minimum withdrawal (5.00%) | $15,000 |
| Allowable withdrawal range | $15,000 to $20,552 |
Within that range, you choose how much to withdraw. The decision involves balancing current income needs, tax efficiency, account longevity, and coordination with CPP and OAS.
Provincial Differences
The pension legislation governing your LIF depends on the jurisdiction of the original pension (for a provincially regulated plan, generally the province where you worked), not necessarily where you live now. This matters because the unlock provisions and, in some cases, the maximum withdrawal formulas differ. Critically, most provinces do NOT use the federal maximum table above: Alberta, BC, Ontario, New Brunswick, Newfoundland and Labrador, and legacy Saskatchewan LIFs use a higher shared provincial formula instead.
| Province | LIF Type | Governing Legislation |
|---|---|---|
| Federal | LIF | Pension Benefits Standards Act |
| Ontario | LIF | Pension Benefits Act (Ontario) |
| Alberta | LIF | Employment Pension Plans Act |
| British Columbia | LIF | Pension Benefits Standards Act |
| Quebec | LIF | Supplemental Pension Plans Act |
| Manitoba | LIF (or Prescribed RRIF, via a one-time 50% unlock from a LIF at 55+) | The Pension Benefits Act |
| Saskatchewan | LIF, or a Prescribed RRIF (PRIF): the standard product for anyone 55+, with no maximum withdrawal | The Pension Benefits Act, 1992 |
The most significant provincial differences to be aware of:
| Province | Notable Difference |
|---|---|
| Saskatchewan | New accounts use a PRIF (Prescribed RRIF), with no maximum withdrawal limit. Older, unconverted Saskatchewan LIFs still follow the standard provincial maximum table below. |
| Manitoba, Nova Scotia | Use their own lower maximum table, each based on that province’s own prescribed reference rate rather than the federal bond-yield formula (see below). |
| Quebec | Uses its own maximum table, but only enforces it up to age 54. From age 55 onward, Quebec LIFs have no legislated maximum at all (see below). |
| Alberta | Allows a one-time 50% unlocking option (age 50+) at the point of LIRA conversion |
| Ontario | Allows a one-time transfer of up to 50% of the balance to an RRSP or RRIF within 60 days of LIRA-to-LIF conversion (FSRA Form 5.2); no separate age threshold beyond the age needed to convert |
| Manitoba | Also allows a separate one-time transfer of up to 50% of a LIRA or LIF balance to a prescribed RRIF (PRIF) at age 55+, distinct from its own LIF maximum table above, and full unlocking from age 65 |
| Nova Scotia | Since April 1, 2025, allows a one-time transfer of up to 50% of the money moved into a new LIF, at age 55+, within 60 days |
Standard Provincial Maximum: Alberta, BC, Ontario, New Brunswick, Newfoundland and Labrador, (legacy) Saskatchewan
| Age (as at Jan 1, 2026) | Maximum % |
|---|---|
| 50 | 6.27% |
| 51 | 6.31% |
| 52 | 6.35% |
| 53 | 6.40% |
| 54 | 6.45% |
| 55 | 6.51% |
| 56 | 6.57% |
| 57 | 6.63% |
| 58 | 6.70% |
| 59 | 6.77% |
| 60 | 6.85% |
| 61 | 6.94% |
| 62 | 7.04% |
| 63 | 7.14% |
| 64 | 7.26% |
| 65 | 7.38% |
| 66 | 7.52% |
| 67 | 7.67% |
| 68 | 7.83% |
| 69 | 8.02% |
| 70 | 8.22% |
| 71 | 8.45% |
| 72 | 8.71% |
| 73 | 9.00% |
| 74 | 9.34% |
| 75 | 9.71% |
| 76 | 10.15% |
| 77 | 10.66% |
| 78 | 11.25% |
| 79 | 11.96% |
| 80 | 12.82% |
| 81 | 13.87% |
| 82 | 15.19% |
| 83 | 16.90% |
| 84 | 19.19% |
| 85 | 22.40% |
| 86 | 27.23% |
| 87 | 35.29% |
| 88 | 51.46% |
| 89 or older | 100.00% |
Applies to: Alberta, BC, Ontario, New Brunswick, Newfoundland and Labrador, (legacy) Saskatchewan. Source: Empire Life – 2026 LIF Minimum/Maximum Withdrawal Percentages. Saskatchewan's current standard product is the PRIF, which has no maximum; this table applies only to Saskatchewan LIFs that have not been converted to a PRIF.
Manitoba and Nova Scotia Maximum
| Age (as at Jan 1, 2026) | Maximum % |
|---|---|
| 50 | 6.10% |
| 51 | 6.10% |
| 52 | 6.10% |
| 53 | 6.10% |
| 54 | 6.10% |
| 55 | 6.40% |
| 56 | 6.50% |
| 57 | 6.50% |
| 58 | 6.60% |
| 59 | 6.70% |
| 60 | 6.70% |
| 61 | 6.80% |
| 62 | 6.90% |
| 63 | 7.00% |
| 64 | 7.10% |
| 65 | 7.20% |
| 66 | 7.30% |
| 67 | 7.40% |
| 68 | 7.60% |
| 69 | 7.70% |
| 70 | 7.90% |
| 71 | 8.10% |
| 72 | 8.30% |
| 73 | 8.50% |
| 74 | 8.80% |
| 75 | 9.10% |
| 76 | 9.40% |
| 77 | 9.80% |
| 78 | 10.30% |
| 79 | 10.80% |
| 80 | 11.50% |
| 81 | 12.10% |
| 82 | 12.90% |
| 83 | 13.80% |
| 84 | 14.80% |
| 85 | 16.00% |
| 86 | 17.30% |
| 87 | 18.90% |
| 88 or older | 20.00% |
Applies to: Manitoba, Nova Scotia. Source: Empire Life – 2026 LIF Minimum/Maximum Withdrawal Percentages. Manitoba sets its maximum from its own prescribed reference rate rather than directly from the federal bond rate. This table plateaus at a flat 20.00% cap from age 88 onward rather than rising to 100%.
Quebec Maximum
| Age (as at Jan 1, 2026) | Maximum % |
|---|---|
| 50 | 6.25% |
| 51 | 6.25% |
| 52 | 6.25% |
| 53 | 6.25% |
| 54 | 6.25% |
| 55 | 5.15% |
| 56 | 5.20% |
| 57 | 5.25% |
| 58 | 5.30% |
| 59 | 5.36% |
| 60 | 5.42% |
| 61 | 5.48% |
| 62 | 5.55% |
| 63 | 5.62% |
| 64 | 5.70% |
| 65 | 5.78% |
| 66 | 5.87% |
| 67 | 5.97% |
| 68 | 6.08% |
| 69 | 6.19% |
| 70 | 6.32% |
| 71 | 6.45% |
| 72 | 6.60% |
| 73 | 6.76% |
| 74 | 6.94% |
| 75 | 7.14% |
| 76 | 7.36% |
| 77 | 7.60% |
| 78 | 7.87% |
| 79 | 8.17% |
| 80 | 8.52% |
| 81 | 8.91% |
| 82 | 9.36% |
| 83 | 9.88% |
| 84 | 10.49% |
| 85 | 11.22% |
| 86 | 12.09% |
| 87 | 13.17% |
| 88 | 14.51% |
| 89 | 16.24% |
| 90 | 18.55% |
| 91 | 21.80% |
| 92 | 26.67% |
| 93 | 34.81% |
| 94 | 51.10% |
| 95 or older | 100.00% |
Applies to: Quebec. Source: Empire Life – 2026 LIF Minimum/Maximum Withdrawal Percentages. This is the legislated maximum only for ages 54 and younger. From age 55, Quebec LIFs have no enforced maximum: the figure shown is an estimated life income amount for reference, not a legal cap.
If your LIF was established under federal pension rules (e.g., you worked for a federally regulated employer such as a bank or airline), the federal Pension Benefits Standards Act applies regardless of the province where your LIF is held.
Unlocking LIF Funds
Because LIF funds originate from a pension, they come with restrictions designed to ensure they provide lifetime income. However, most jurisdictions recognize that rigid lock-in rules can cause hardship in certain situations, so there are several pathways to unlock funds, either partially or fully, outside the regular annual withdrawal limit.
Small Balance Unlocking
If the total value of your LIF falls below a threshold set by your jurisdiction, you can usually collapse the account entirely and withdraw or transfer the full balance. The threshold is typically linked to the Year’s Maximum Pensionable Earnings (YMPE) and is updated annually.
| Jurisdiction | Threshold | Notes |
|---|---|---|
| Federal | $37,300 (2026) | 50% of YMPE; age 55+; total of all your federally regulated locked-in plans |
Provincial thresholds are lower in several provinces (20% of the YMPE for BC and Alberta holders under 65, for example) and often carry their own age condition; the LIRA guide has the table by province. Check your pension regulator for the exact threshold that applies to your LIF.
Small balance unlocking is one of the most straightforward ways to gain full access to a modest LIF. If your balance is near the threshold, it may be worth waiting until a market downturn or a withdrawal brings you below the limit.
Other Unlock Provisions
Beyond small balances, most jurisdictions offer several additional grounds for unlocking:
| Provision | What It Requires |
|---|---|
| Financial hardship | Application to financial institution; must demonstrate low income, rent/mortgage arrears, or medical/disability costs |
| Shortened life expectancy | Letter from a physician certifying an illness or disability likely to shorten your life considerably (Ontario and Manitoba set the bar at under 2 years) |
| Non-residency | Usually at least 2 years out of Canada, plus written confirmation of non-residency (most jurisdictions ask for a CRA determination letter) |
| One-time 50% unlock at conversion | Ontario, Alberta (age 50+), Manitoba (age 55+, to a prescribed RRIF), Nova Scotia (age 55+, since April 1, 2025), and federally-regulated LIRAs (via a Restricted LIF, age 55+, within 60 days of transfer) all allow a one-time transfer of up to 50% of the balance; BC does not offer this option under any structure |
| Small pension transfer | Some plans allow early unlock when the commuted pension value is small |
The unlock application process runs through your financial institution, not CRA or the pension regulator (BC’s regulator, for example, has no role in releasing funds for financial hardship). Allow several weeks for processing.
Related Reading
- LIRA Withdrawal Rules Canada | Unlocking and Conversion
- RRIF Calculator: Minimum Withdrawal Rates
- RRSP to RRIF Conversion Guide
- OAS Clawback Calculator
- CPP Calculator
- FHSA Withdrawal Rules
- RRSP Withdrawal Rules Canada
→ Back to: Complete RRSP Guide
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.
- BC Financial Services Authority: Unlocking pension funds | BCFSA
- Canada Revenue Agency: RRSPs and Other Registered Plans for Retirement
- Canada Revenue Agency: Chart – Prescribed factors
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
- Empire Life: 2026 LIF Minimum/Maximum Withdrawal Percentages
- Government of Alberta: Superintendent of Pensions - Accessing Pension Funds
- Government of Manitoba: Manitoba pension laws: unlocking funds (Office of the Superintendent, Pension Commission)
- Government of Nova Scotia: Nova Scotia introduces 50% unlocking at age 55
- Justice Laws (Canada): Income Tax Act
- Ontario e-Laws: R.R.O. 1990, Reg. 909: GENERAL"
- OSFI: Life Income Funds, Restricted Life Income Funds, and Variable Benefits Accounts
- OSFI: Unlocking funds from a pension plan or from a locked-in retirement savings plan