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Section 7 of Schedule 1.1 provides that money in a New LIF, including any accrued interest and any other investment earnings, may only be transferred to another New LIF or to an insurance company for the purchase of an immediate life annuity. Money cannot be transferred from a New LIF to a LIRA, Old LIF or LRIF.
The Pension Benefits Act sets out four categories of financial hardship under which you can unlock your pension funds held in a locked-in retirement account (LIRA) or life income fund (LIF). You can unlock for any of these reasons and you can unlock for a combination of reasons.
A life income fund (LIF) is a type of registered retirement income fund (RRIF) offered in Canada that can be used to hold locked-in pension funds as well as other assets for an eventual payout as retirement income. A life income fund cannot be withdrawn in a lump sum.
Getting money out of your LIRA For that reason, typically the only way to unlock a LIRA is to retire, and the earliest age you can do that is 55. To get income from a LIRA in retirement, youll need to transfer the funds to a life income fund (LIF) or a life annuity. Money thats moved into a LIRA can be self-managed.
Locked-in retirement accounts ( LIRAs ) and life income funds ( LIFs ) are transfer instruments used to transfer amounts that have accrued in supplemental pension plans (also called pension funds or pension plans). An LIRA is a retirement savings vehicule, while an LIF is used to draw a retirement income (withdrawal).
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In simple words, LIF is a retirement plan that can be used to hold locked-in pension funds to be used later for retirement income. Unlike your RRSP or RRIF, this cannot be withdrawn as a lump sum. BUT (isnt there always a but) you can split the split the LIRA in half. 50% goes into an RRSP or RRIF (no lock in).
The Pension Benefits Act sets out four categories of financial hardship under which you can unlock your pension funds held in a locked-in retirement account (LIRA) or life income fund (LIF). You can unlock for any of these reasons and you can unlock for a combination of reasons.
Once you turn 71 years old you can transfer your LIRA amount into a life income fund (LIF), this will then provide you payments from your pension throughout your retirement.
At the end of the year in which you turn 71, the LIRA comes to an end. You will not be able to unlock the money in your LIRA at that time. You will have to use all the money in your LIRA to either buy a LIF or a life annuity.
Getting money out of your LIRA For that reason, typically the only way to unlock a LIRA is to retire, and the earliest age you can do that is 55. To get income from a LIRA in retirement, youll need to transfer the funds to a life income fund (LIF) or a life annuity. Money thats moved into a LIRA can be self-managed.

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