Introduction: What is a Life Income Fund?
A life income fund (LIF) is a type of retirement income vehicle in Canada that enables individuals to manage the payouts from their locked-in pension funds and other assets for a guaranteed lifetime income, as required by government regulations. It is a subcategory of registered retirement income funds (RRIFs) with specific rules regarding minimum withdrawals, investment choices, and eligibility age.
Understanding Life Income Fund Rules:
Government regulations play a significant role in the ownership, management, and payouts from life income funds. Key aspects include:
1. Age Requirements: You must be at least of early retirement age to purchase a LIF and begin receiving payments. The exact age requirement varies depending on specific pension legislation.
2. Payments and Withdrawals: LIFs require that you take minimum annual withdrawals, with the specified amounts determined by the Income Tax Act’s RRIF regulations. You cannot make lump sum withdrawals or use your spouse’s age to determine the minimum payments.
3. Beginning Payments: LIF payments can begin at age 65, but they must begin in the year following your 71st birthday.
4. Spousal Consent and Death Benefits: You will need your spouse’s consent before setting up a LIF, as their future potential death benefits could be impacted by withdrawals from the fund. In the event of death, the balance is typically paid to the surviving spouse or heirs.
5. Investment Choices: Life income funds offer greater investment freedom than other retirement income vehicles, allowing you to choose your investments (as long as they’re eligible), unlike RRIFs that usually require a minimum percentage to be allocated to annuities.
6. Creditor Protection: Funds held in life income funds are creditor-protected, providing an additional layer of security for individuals against seizure by debtors.
Advantages and Disadvantages of Life Income Funds:
Life income funds offer numerous advantages when used as a retirement income vehicle, such as tax-deferred growth, customizable investment options, creditor protection, and flexibility in withdrawals. However, they also have certain disadvantages including minimum withdrawal requirements, limitations on investment choices, and restrictions on early access to funds.
Section Conclusion:
Life Income Funds (LIF) offer Canadians a valuable option for managing their retirement income by providing tax-deferred growth, investment flexibility, creditor protection, and a guaranteed lifetime income stream. However, individuals must carefully consider both the advantages and disadvantages before deciding to invest in a LIF. As always, it is recommended to consult with a financial advisor or professional for personalized advice tailored to your unique circumstances.
Life Income Fund Rules
A life income fund (LIF) is a retirement savings tool available in Canada that functions as an investment account for generating regular income during retirement. LIFs are a type of registered retirement income fund (RRIF), and they come with specific rules set forth by the Canadian government. The following outlines some essential aspects of these rules.
Government Regulations: Life Income Fund Ownership, Age Requirements, Payments, and Withdrawals
To purchase a LIF, one must meet the early retirement age requirement as specified in pension legislation. Upon reaching this age, individuals can begin receiving payments from their LIF. However, it’s important to note that payments cannot be initiated before turning 71. The Income Tax Act sets forth minimum and maximum withdrawal amounts for RRIFs (which include LIFs), based on the total investments, account balance, and annuity factor.
Qualifications:
– Must meet early retirement age requirement in pension legislation.
– Cannot initiate payments before turning 71.
– Follows minimum and maximum withdrawal guidelines set by Income Tax Act for RRIFs.
Advantages:
A life income fund offers several benefits to retirees, including tax-deferred growth on contributions, customizable investment choices, creditor protection, and the ability to generate a steady retirement income stream. Since these funds are registered, all growth remains tax-deferred until withdrawals begin, allowing for more significant savings over time. Additionally, LIFs provide the freedom to choose from various investments (as long as they’re eligible) and offer creditor protection.
Disadvantages:
Although life income funds come with numerous advantages, there are some disadvantages to consider. Minimum withdrawal requirements can limit your ability to access all of your funds when needed, and restrictions on investment choices may not cater to those seeking more diversified or aggressive investment strategies. It’s essential to carefully weigh the pros and cons before deciding if a LIF is right for you.
Investment Options:
A life income fund offers various investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and guaranteed investment certificates. These choices allow retirees to create a diversified portfolio that best suits their financial situation, risk tolerance, and retirement goals.
Management:
When choosing a life income fund provider, it’s crucial to consider factors such as fees, investment options, customer service, and reputation. Researching providers and assessing their offerings can help ensure you find the best fit for your needs and preferences.
Stay tuned for subsequent sections of this article, where we will discuss the advantages and disadvantages of life income funds, and how they differ from RRSPs, RRIFs, and LIRAs.
Advantages of Life Income Funds in Canada
A life income fund (LIF) offers several advantages to Canadians seeking retirement income solutions. This type of investment vehicle, which is essentially a specialized RRIF, provides numerous benefits that make it an attractive option for many retirees. Below, we delve into the advantages of setting up a LIF and discuss why it may be the perfect fit for your retirement planning.
1. Tax-deferred Growth: Like other registered investment vehicles in Canada, LIFs offer tax-deferred growth. This means that any capital gains or income earned within the fund is not subject to taxes until you begin making withdrawals. The tax deferral can lead to substantial savings over time as your investments continue to grow without being diminished by annual taxes.
2. Customizable Investment Options: LIFs provide flexibility in terms of investment choices. While there are restrictions on which securities can be held, the fund’s owner may select among various investment options that best suit their risk tolerance and retirement goals. This allows individuals to maintain a diversified portfolio while optimizing their retirement income.
3. Creditor Protection: LIFs offer creditor protection, meaning funds within the account cannot be seized to pay off debt obligations. This feature provides peace of mind for retirees as they enter retirement with confidence that their hard-earned savings are protected from creditors and potential legal disputes.
4. Flexibility in Withdrawals: LIFs offer a degree of flexibility when it comes to withdrawals, as they allow investors to determine the amount of income they want to receive each year within specified limits. This feature enables retirees to manage their cash flow effectively while optimizing their retirement income based on their personal circumstances and evolving needs.
5. Minimum and Maximum Withdrawal Limits: LIFs come with a set of minimum and maximum withdrawal limits, which can help ensure that the funds last throughout retirement. The annual minimum withdrawal amount is calculated based on the Income Tax Act’s RRIF rules, while the maximum withdrawal limit ensures that retirees do not deplete their savings too quickly.
6. Transition from Other Retirement Savings: A life income fund can be an excellent option for individuals who have locked-in assets such as pension plans or LIRAs and want to convert those funds into retirement income. This allows them to maintain control over their investments while also benefiting from the tax deferral and creditor protection that a LIF offers.
In summary, life income funds offer several advantages for Canadians seeking secure, flexible, and customizable retirement income solutions. By understanding the benefits of a LIF, you can make an informed decision about whether this investment vehicle is right for your specific retirement planning needs.
Disadvantages of Life Income Funds
Life income funds are an excellent choice for managing retirement income in Canada; however, they do come with their own set of disadvantages. These potential drawbacks include minimum withdrawal requirements, restrictions on investment choices, and limitations on early access to funds.
Minimum Withdrawal Requirements
One major disadvantage of a life income fund (LIF) is the minimum annual withdrawal requirement that must be taken from an RRIF, which includes LIFs. The Income Tax Act sets out specific minimums for each year based on the account holder’s age and the total value of their retirement income accounts. These requirements ensure a steady stream of income in retirement but can result in an individual having to withdraw more than they might otherwise need or want, potentially reducing the longevity of their savings.
Restrictions on Investment Choices
Another disadvantage is the restrictions on investment choices within a LIF. While life income fund owners have control over their investments, they must ensure that all selections adhere to regulations set by the Income Tax Act for RRIFs. Qualified investments include cash, mutual funds, ETFs, securities listed on a designated exchange, corporate bonds, and government bonds. This limitation may not be suitable for investors seeking a wider range of investment options or those desiring more flexibility.
Early Access to Funds
Lastly, LIFs do not allow for early access to funds before retirement age. The Income Tax Act requires individuals to begin receiving payments from their life income fund in the year following their 71st birthday. There are exceptions for those who hold a qualifying annuity or are physically disabled; however, these instances make up a small percentage of cases. This restriction can be challenging for individuals experiencing financial hardship before reaching retirement age or facing unexpected expenses that cannot wait until they turn 71.
In summary, life income funds offer numerous advantages such as tax-deferred growth, customizable investment options, and creditor protection. Still, potential drawbacks include mandatory minimum withdrawals, limitations on investment choices, and restrictions on early access to funds. By understanding these pros and cons, investors can make informed decisions when considering a life income fund for their retirement planning needs.
Life Income Fund Management: Choosing a Provider
A life income fund (LIF) is an investment vehicle that provides retirees with regular income payments from their retirement savings during their lifetime. Choosing the right LIF provider can significantly impact the overall experience and long-term financial goals of investors, especially when it comes to investment options, fees, customer service, and account accessibility. In Canada, various reputable providers offer life income funds. Below is an overview of some popular Canadian institutions with their unique features to help guide your decision-making process.
Sun Life Financial: A leading financial services organization in Canada, Sun Life Financial offers a wide range of investment solutions for LIF investors. Their diverse product offering includes insurance guaranteed investment contracts (GICs), mutual funds, segregated fund contracts, and more. This broad selection allows clients to customize their retirement income according to their preferences and risk tolerance levels. Additionally, Sun Life provides online account access, making it easy for users to monitor their LIF holdings and review past performance.
Canada Life: As a prominent life insurance company in Canada, Canada Life is well-known for its expertise in retirement savings products. Their LIF solutions enable investors to convert registered pension plans, locked-in registered retirement savings plans (RRSPs), or locked-in retirement accounts (LIRAs) into a LIF account. This conversion process offers convenience and simplification when managing multiple retirement assets. Furthermore, Canada Life’s straightforward payment withdrawal methods cater to retirees seeking hassle-free income solutions.
Canadian Imperial Bank of Commerce: One of the ‘Big Five’ banks in Canada, CIBC provides a LIF daily interest savings account, which offers the unique benefit of allowing investors to earn daily interest on their invested funds. This can be particularly attractive for those seeking regular income while maintaining liquidity within their retirement accounts. Moreover, CIBC’s extensive branch network and online banking capabilities facilitate easy access to customer service representatives and various LIF account management tools.
Choosing the appropriate provider is an essential decision when setting up a life income fund. Consider factors such as investment options, fees, account accessibility, customer service, and flexibility when evaluating each institution’s offerings to ensure optimal results for your retirement goals.
Types of Investments Allowed in a LIF
A life income fund (LIF) offers investors the opportunity to manage their retirement income from a variety of investments. The Canadian government stipulates that only specific types of investments are permissible within an account. Here’s a closer look at what can be held in a LIF, allowing you to make informed decisions regarding your retirement planning.
Qualified Investments:
The Income Tax Act outlines the list of investments eligible for inclusion in a registered retirement income fund (RRIF), which is the umbrella under which a life income fund falls. Qualified investments include cash, mutual funds, exchange-traded funds (ETFs), stocks listed on designated stock exchanges, corporate and government bonds, and segregated funds.
This extensive selection of investment choices allows you to create an asset allocation strategy that suits your risk tolerance, investment objectives, and retirement goals. The variety also enables you to diversify your portfolio and potentially mitigate market volatility by spreading investments across various asset classes.
Mutual Funds:
Mutual funds are a popular choice within a LIF due to their simplicity, professional management, and diversity of offerings. A mutual fund is an investment vehicle that pools together money from multiple investors with the aim of buying a diversified portfolio of stocks, bonds or other assets managed by a fund manager. Investors receive units representing their ownership stake in the fund, which can be bought and sold on the open market.
Mutual funds within a LIF are tax-deferred, meaning contributions grow without being subject to taxes until the time you begin taking distributions. Additionally, mutual funds provide investors with a wide array of investment styles, sectors, and asset classes, making it easier to build a well-diversified portfolio that aligns with your risk tolerance and retirement goals.
Exchange-Traded Funds (ETFs):
An exchange-traded fund (ETF) is another investment vehicle commonly used in LIFs. Similar to mutual funds, ETFs are designed to track the performance of a specific index or sector. However, unlike mutual funds, ETFs trade on an exchange like stocks and can be bought or sold throughout the trading day at prevailing market prices. This flexibility allows investors to make adjustments to their portfolio as market conditions change or as their investment objectives shift.
ETFs offer various benefits within a LIF, including lower management fees due to their passive investment structure and the potential for tax efficiency through in-kind redemptions, which can minimize capital gains taxes. The ability to buy and sell ETFs throughout the trading day also gives investors more flexibility in managing their retirement income.
Segregated Funds:
A segregated fund is a type of mutual fund that offers investors contractual guarantees on their principal investments, providing an added layer of security. This guaranteed minimum payout (GMP) can offer peace of mind for retirees concerned about market volatility and potential losses to their retirement savings.
Within a LIF, segregated funds can provide a balance between capital preservation and investment growth. These funds come in various forms, including fixed-income or equity-based options, catering to different risk tolerances and investment objectives. Segregated funds within a LIF grow tax-deferred until you begin taking distributions, ensuring your retirement savings continue to accumulate value for an extended period.
Cash:
Cash is another investment option available within a LIF. This low-risk asset class provides liquidity and stability to a retirement portfolio. Cash holds no risk of market volatility or capital losses, making it an ideal choice for investors seeking a conservative approach to their retirement savings. It’s important to note that cash investments in a LIF earn a low rate of return due to the current interest rates.
Bonds:
Corporate and government bonds are another investment option within a LIF account. These debt instruments provide investors with regular income through periodic interest payments, which can contribute to a steady retirement income stream. Bonds offer a lower level of risk compared to equities but have a trade-off in the form of potentially smaller returns due to the lower risk profile.
When selecting bonds for a LIF, it’s crucial to consider the credit quality of the issuer, as well as your investment objectives and risk tolerance. Government bonds offer higher creditworthiness than corporate bonds since they are backed by the full faith and credit of the issuing government. On the other hand, corporate bonds can potentially provide higher yields but involve a greater degree of risk.
In conclusion, understanding the types of investments allowed in a life income fund enables you to make informed decisions regarding your retirement planning. By diversifying your portfolio across various asset classes, such as mutual funds, ETFs, segregated funds, cash, and bonds, you can create an investment strategy that aligns with your risk tolerance, investment objectives, and retirement goals while ensuring the growth of your retirement savings remains tax-deferred until distribution.
Life Income Fund vs. RRSP, RRIF and LIRA
When exploring retirement income options in Canada, understanding the differences between life income funds (LIFs), Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), and Lock-In Retirement Accounts (LIRAs) can help you make informed decisions on your retirement strategy. These four options serve as vital pillars for individuals seeking financial security during their post-working years, each with unique features that cater to specific needs.
First, let’s differentiate a life income fund from the other three: A Life Income Fund (LIF) is a type of Registered Retirement Income Fund (RRIF). While an RRIF can be accessed at any age as long as the income is used for retirement purposes, a LIF requires you to meet specific regulations set by pension legislation. You must reach either your early retirement age or your normal retirement date to purchase and start receiving payments from a LIF.
Now that we’ve established how life income funds differ from other retirement savings vehicles let us compare their primary features:
1. Flexibility in Withdrawals
RRSPs offer flexibility by allowing you to withdraw contributions before retirement with no taxes due, while RRIFs and LIFs mandate minimum annual payments. Both RRIFs and LIFs are taxed as income during retirement. However, the major difference lies within the age requirements for each; RRIFs can be started at any age while a LIF is subject to pension legislation guidelines.
2. Investment Choices and Taxation
RRSPs give you control over investments, but withdrawals are taxed as income at your marginal tax rate upon withdrawal. RRIFs offer more flexibility with investment options compared to LIFs (which often require a life annuity), but like all retirement vehicles, they’re subject to minimum annual withdrawals and taxation during retirement.
3. Creditor Protection
All the mentioned retirement income vehicles – RRSPs, RRIFs, and LIFs – provide creditor protection for funds within these accounts. However, the specifics of creditor protection can vary between provinces so it’s crucial to research your local jurisdiction.
4. Conversion from Locked-In Assets
When converting locked-in assets into retirement income vehicles, RRIFs and LIFs are viable options. To understand which is best suited for your unique situation, consider factors like your age and preferred investment choices. In the case of converting a pension plan or RRIF to a LIF, note that you cannot begin receiving payments until the specified age as per pension legislation.
5. Taxation upon Death
Each retirement savings vehicle has varying death benefits depending on the situation, such as payouts to your spouse, designated beneficiaries, or heirs. Consulting with a financial advisor can help clarify how the death benefit rules apply to your specific situation.
Ultimately, your choice between an RRSP, RRIF, LIRA, or life income fund depends on various factors like age, investment preferences, and personal circumstances. As you navigate your retirement journey, it is essential to explore these options thoroughly and consider consulting a financial advisor for professional guidance in making informed decisions.
In conclusion, understanding the differences between LIFs, RRSPs, RRIFs, and LIRAs can lead to an effective retirement strategy tailored to your unique situation. By weighing the pros and cons of each, you can optimize your financial future and secure a comfortable retirement income.
Life Income Fund Conversion from Locked-in Assets
A life income fund (LIF) is an excellent option for converting locked-in assets like pension plans and RRSPs when you’re ready to start receiving retirement income. Understanding the conversion process can help you make the most of your savings while adhering to government regulations.
First, let’s clarify what we mean by “locked-in” assets. These are funds that come from pensions or Registered Retirement Savings Plans (RRSPs) which cannot be accessed directly before specific age requirements or events. For instance, you might have a pension plan through a previous employer or an RRSP that’s locked-in due to tax reasons.
When it comes to converting these assets into a life income fund, there are some essential things to consider. The first step is understanding the rules set by the Income Tax Act regarding LIFs and their minimum withdrawals. This will help you determine when and how much you can start receiving retirement income from your LIF.
The conversion process usually involves transferring your locked-in assets from your current pension plan or RRSP to a financial institution that offers life income funds. During this process, you’ll need to choose the investment options for your new LIF account based on your risk tolerance, time horizon, and retirement goals. Be sure to select investments that not only meet the LIF requirements but also align with your long-term strategy.
Once you’ve set up your LIF account and chosen your investments, you can start receiving regular payments. These payments are calculated using a government formula based on factors like your age, investment income, and life expectancy. The formula ensures that your retirement income lasts throughout your lifetime while adhering to minimum withdrawal requirements.
It’s essential to note that the conversion of locked-in assets into a life income fund is not mandatory but an optional choice for those who wish to convert their pension or RRSP funds into retirement income. However, converting these funds may offer some advantages such as:
1. Tax-deferral – Contributions to your LIF continue to grow tax-deferred until you start receiving withdrawals.
2. Flexibility in investment options – You can choose from a variety of investment choices for your LIF account, allowing you to customize it based on your risk tolerance and retirement goals.
3. Creditor protection – The funds in your LIF are protected from creditors, ensuring that they remain available for your retirement needs.
4. Liquidity and accessibility – Unlike other registered plans like locked-in RRSPs or LIRAs, a life income fund provides more flexibility when it comes to accessing your money during retirement.
5. Spousal rollovers – You may be able to transfer the funds to your spouse’s LIF or an RRIF if you pass away, ensuring that their retirement savings continue to grow.
To summarize, converting locked-in assets into a life income fund offers various benefits, such as tax-deferral, investment flexibility, creditor protection, liquidity, and spousal rollovers. By carefully considering the rules, process, and advantages of this option, you can make an informed decision about whether a LIF is right for your retirement savings.
FAQs:
1. What are the age requirements for converting assets to a life income fund? The minimum age requirement for purchasing a LIF is early retirement age (as specified by pension legislation), and the minimum age for receiving payments from a LIF is either early retirement or normal retirement age, depending on your province’s regulations.
2. Are contributions to a life income fund taxed? Yes, any earnings generated within a LIF account are taxable at your marginal tax rate when you withdraw them.
3. Can I transfer my spouse’s locked-in assets into a life income fund? Typically, no – but some provinces allow spousal transfers under specific circumstances. Make sure to check with the financial institution where you plan to open the LIF for more information.
4. Is it mandatory to convert locked-in assets into a life income fund? No, it’s an optional choice for those who wish to convert their pension or RRSP funds into retirement income. If your assets are already in a pension or RRSP, you don’t need to convert them until you’re ready to start receiving retirement income.
5. What happens if I pass away while still receiving payments from my life income fund? The balance of your account may be transferred to your spouse (if they meet specific requirements) or your estate, depending on the regulations in your province.
Calculating Your Minimum Withdrawals with the Income Tax Act
When you begin receiving payments from a life income fund (LIF), you must comply with annual minimum withdrawal requirements based on the Income Tax Act. This legislation sets forth guidelines for determining minimum and maximum withdrawals for all RRIFs, including LIFs. These rules help ensure that your retirement funds last for your lifetime.
To calculate your annual minimum withdrawal amount for a life income fund, consider the following factors:
1. Your age – The Income Tax Act defines different minimum withdrawal percentages depending on your age. Generally, the percentage increases as you get older to ensure you’re accessing a sufficient amount of funds each year. For example, someone who is 65 may need to withdraw a smaller percentage of their LIF balance compared to a person who is 75 or older.
2. Your LIF balance – The Income Tax Act sets forth minimum withdrawal percentages based on the total value of your LIF assets. You must calculate your minimum withdrawal amount as a percentage of this balance. For instance, if you have a $300,000 LIF balance and are 65 years old, you will be required to withdraw a specific minimum percentage of that balance annually, based on the Income Tax Act’s guidelines for your age.
3. Life Expectancy – The Income Tax Act uses life expectancy tables to determine minimum withdrawal percentages. These tables factor in average life expectancies based on various age ranges. This ensures that you are withdrawing a sufficient amount of funds each year to last throughout your retirement years.
4. Annuity Factor – Your annuity factor comes into play when calculating the maximum withdrawal percentage for a LIF. The annuity factor depends on several factors, such as interest rates and life expectancy tables. It represents the present value of future payments you will receive from your LIF over your expected remaining lifetime. This factor determines the maximum amount of money you can withdraw annually without running out of funds.
5. Conversion Factor – The conversion factor is another important consideration when determining minimum withdrawal percentages for a life income fund. It represents the ratio of the previous year’s interest rate to the current year’s interest rate. This factor is used in calculating your annual payment based on the minimum withdrawal percentage.
6. Investment earnings – Your LIF investment earnings also play a role in determining your minimum and maximum withdrawals each year. The Income Tax Act requires you to calculate these percentages using either your account balance at the start of the year, or your previous year’s value plus any new contributions or earnings, whichever is greater.
To calculate your minimum withdrawal amount for a given year, apply the percentage specified by the Income Tax Act based on your age and balance to your LIF’s total value as of January 1st of that year. The resulting number represents your annual minimum required withdrawal. If you wish to withdraw more than the minimum, keep in mind that any excess amount will be taxed as income.
If you need assistance calculating your LIF minimum or maximum withdrawals, consult a financial advisor or speak with your LIF provider for guidance. By following these guidelines, you’ll ensure a sustainable retirement income strategy using a life income fund.
Frequently Asked Questions About Life Income Funds
1. What age can I begin taking payments from my Life Income Fund (LIF)?
You must be at least the early retirement age or normal retirement date as defined in the pension legislation to start receiving LIF payments.
2. What happens if I don’t withdraw the minimum amount required?
If you fail to take out the minimum withdrawal, the financial institution will withhold taxes on the difference between what was withdrawn and the specified minimum amount.
3. Can I use my spouse’s age when calculating minimum LIF payments?
No, you cannot use your spouse’s age when determining minimum LIF payments.
4. Is a life income fund taxed?
Yes, life income fund payments are considered income and are taxed at your marginal tax rate.
5. What happens to my Life Income Fund if I pass away?
Upon death, the balance of your LIF is typically paid to your spouse. If your spouse refuses payment or is absent, it will be paid to your heirs.
6. What is the difference between a LIF and other retirement savings vehicles such as an RRSP, RRIF, or LIRA?
RRIFs, LIFs, and other retirement savings vehicles serve the purpose of providing income during retirement but differ in terms of rules, investment options, and accessibility. An RRSP is a tax-deferred savings account that can be converted to an RRIF once you turn 71 years old. A LIF provides income for your lifetime while offering more flexibility over investments compared to RRIFs.
7. What types of investments are allowed in a Life Income Fund?
Qualified investments include cash, mutual funds, ETFs, securities listed on a designated exchange, corporate bonds, and government bonds.
8. How does the minimum withdrawal calculation work for a Life Income Fund?
Minimum withdrawals are calculated using the Income Tax Act’s RRIF stipulations. The formula takes into account your age, investment income, and life expectancy to determine the required minimum payment.
9. What is the difference between an RRSP and a LIF?
An RRSP is a retirement savings plan that allows for tax-deferred contributions, while a LIF is a registered retirement income fund used to manage retirement income during your lifetime. Withdrawals from an RRSP are taxed, while withdrawals from a LIF are considered income and taxed at your marginal tax rate.
10. What happens when you turn 71 with a locked-in pension or an RRIF?
You must convert these types of retirement savings into a LIF or purchase an annuity. This allows for the continued growth of funds while providing you with income during your retirement years.