Financial Services: LRIF Accounts in Canada with LMBF

Retirement isn’t always straightforward. For many, there are financial obstacles, uncertainties, and the worry that our savings might not last the rest of our lifetime. An LRIF, similar to an LIF account, is a tax-sheltered account which is used to pay out an accumulated amount of your locked-in retirement savings and helps fund your retirement income. With an LRIF, there is a set minimum and maximum you are permitted to receive each year from your LRIF account, but you have the option of controlling the frequency of your payments and your investment options. LMBF’s advisors are here to help look over your financial situation and aid in your decision as to whether or not an LRIF account is right for you.

The Benefits of LMBF’s LRIF Services in Canada

Tailored Advice

Tailored Advice

The world of financial planning isn’t always straightforward, and LMBF understands that not everyone has the same circumstances, income, or risk profile. We get to know you in order to provide you with tailored advice based on your situation.

Investment Solutions

Investment Solutions

The worry that you might outlive your retirement savings isn’t an uncommon concern. With an LRIF, you have the flexibility to control your investment options. Let LMBF help provide you with its expert advice on your investment options.

  Reasons to need an LRIF in Canada
  • You want a steady stream of income following your retirement
  • You want control over your investment and payment options
  • You want your remaining funds transferred to a spouse in the event of your death
  Ways that an LRIF may benefit you
  • Little volatility
  • Flexible maximum withdrawals
  • Peace of mind for your ongoing retirement income
  • Control over investment and payment options after retirement

What is an LRIF?

An LRIF, otherwise known as a locked-in retirement income fund, is very similar to an LIF, with some key differences. Both are investment accounts meant to hold in pension funds and are used to fund an individual’s retirement. However, any remaining funds in an LIF should be converted to a life annuity at the age of 80. LRIF does not need to be converted. In addition, the maximum withdrawal amount calculation is different between an LIF and an LRIF. Both of these accounts are designed to last your entire lifetime following retirement.

Our LRIF Account Advisors

When you’re saving for retirement, you’re tackling a lot of unknowns. Retirement can be uncertain, and even scary if you aren’t sure whether your savings will last you. An LRIF account can give you the peace of mind you require and serves as an alternative retirement option to a conventional pension fund. LMBF’s advisors can look over your financial circumstances, risk profile, and goals to determine whether an LRIF is the best choice for you.

Call us -

Looking to Get Started on an LRIF in Canada? Get Started By Discussing With LMBF’s Financial Advisors.

Contact Us

LRIFs in Canada: Some Frequently Asked Questions

A: Similar to LIFs, LRIFs have a maximum amount you can withdraw from. However, if you were to own an LRIF and then pass away unexpectedly, your surviving spouse may be awarded the remainder which is then paid out as a lump sum. It can also be transferred to your spouse’s RRIF or RRSP account.

A: Technically, LRIFs are used to hold locked-in retirement income that may only be used to fund your retirement. However, in the event of your death, your registered account funds may pass over to your beneficiaries. This amount is fully taxable to the deceased holder on their last tax return, but there may be exceptions for financially dependent beneficiaries.

A: LRIFs and LIFs share a lot of similarities, but where an LIF must be converted into a life annuity at age 80, an LRIF does not have to be. You still have that option if you so choose, however.

A: You will be required to pay tax on LRIF withdrawals, however, the funds in your account (while still locked-in) can grow tax-deferred. The actual amount of tax will depend on where you live and how much you withdraw.

A: In the event of an account holder’s death, your surviving spouse is entitled to the full amount that remains in your LRIF. They can receive this as a lump sump payment or they can choose to have it transferred to their own RRIF or RRSP account. If you do not have a spouse, or they’ve waived their entitlement to your death benefit, the remainder will go to your estate or named beneficiary.

A: The maximum withdrawal amount for LRIFs changes each year. Typically, it is based on the investment earnings for that year. As of 2011, it is no longer permitted to carry forward any maximum amount from the previous year towards future years’ maximum payment amounts.