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Restricted Life Income Fund (RLIF)

Flexible income for your retirement

Turn your federally regulated pension savings into income with a RLIF

  • Estate preservation

    If there’s money left in your plan when you die, it goes to your spouse, beneficiaries or estate, subject to applicable legislation (less any applicable taxes).

  • Tax advantages

    You only pay income tax on the money you withdraw each year.

  • Flexible income with growth potential

    You control investments within your plan, so you can hold a variety with potential for growth.

What is a Restricted Life Income Fund (RLIF)?

If you have federally regulated locked-in pension funds a RLIF allows you to convert those funds into retirement income while deferring taxes.

Funds can be transferred to a RLIF from a workplace pension plan when you leave your employer at or before retirement. Funds can also be transferred to the RLIF from a Locked-in retirement fund(LIF) or Locked-in retirement savings plan (LIRA).

How does a RLIF work?

  • You can transfer money from a federally-regulated pension LIRA into a LRIF
  • You get a one-time chance to convert 50% of the RLIF to a RRSP or a RIF, subject to applicable legislation
  • You can work with an advisor to choose the right investments for you
  • Each year, you must withdraw an amount between the legislated minimum and maximum

Are there any pros or cons I should think about with a RLIF?

  • Advantages:

    • Control over income and investments
    • Growth potential
    • Death benefit (any money left over goes to your spouse, beneficiary or estate, subject to applicable legislation)
    • One time unlocking of up to 50%
  • Considerations:

    • Requires some financial decision-making 
    • Legislated minimum and maximum withdrawal amounts
    • Potential for market volatility
    • Potential to run out of money, particularly if you unlock funds
    • Your spouse’s or common-law partner's consent may be required

Let us help you plan for your retirement today.

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The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.