RRIF vs LIF: Withdrawal Rules, Maximums and Unlocking

RRIF vs LIF, in short: both pay you a retirement income from registered savings, and both use the same yearly minimum from the Income Tax Regulations. The difference is where the money came from. A life income fund holds locked-in pension money, so pension law adds a yearly maximum and allows lump sums only in a few set situations. An ordinary RRIF has a minimum and no maximum.

Checked against CRA, OSFI and provincial regulators on October 8, 2026.

Collage of an open RRIF savings jar beside a padlocked LIF jar
Same minimum, but the LIF jar only opens so far

RRIF vs LIF at a glance

How a RRIF and a LIF compare
FeatureRRIFLIF
Money it holdsRegistered savings, for example from an RRSPLocked-in pension money, for example from a LIRA or a pension plan
Rules come fromIncome Tax Act and Income Tax RegulationsIncome Tax Regulations for the minimum; federal or provincial pension law for the maximum and unlocking
Yearly minimumYes, from the year after you open itYes, from the same Income Tax Regulations
Yearly maximumNoneYes, set by the pension law that governs the LIF
First yearMinimum is nilFederal and Ontario maximums are prorated by the months left in the year
Lump sumsAny amount, as taxable incomeGenerally only through an unlocking option
Pension income splitting at 65EligibleEligible
This site's calculatorWorks out the minimumWorks out the minimum only, not the maximum

What a LIF is: locked-in pension money

Ontario's regulator says locked-in money in a LIRA, LIF or LRIF "generally can only be used to provide income after retirement" (FSRA, Pension Unlocking: Non-Hardship). A life income fund is the account that pays that income. OSFI describes federal LIFs and restricted LIFs (RLIFs) as personal retirement income funds whose withdrawals are "subject to minimum and maximum annual withdrawal limits" (OSFI, Life Income Funds, Restricted Life Income Funds, and Variable Benefits Accounts).

The pension law that governed your plan decides the details. Federally regulated money follows OSFI and the Pension Benefits Standards Regulations, 1985; Ontario money follows FSRA; BC money follows BCFSA. In BC you can open a LIF from age 50 if you hold a LIRA, or by direct transfer from a pension plan (BCFSA, LIRAs and LIFs). Other provinces have their own rules, so check with your pension regulator or financial institution.

An ordinary RRIF carries none of these pension limits. You can open one with RRSP savings; the RRSP to RRIF conversion guide covers that route and the age 71 deadline.

LIF withdrawal rules: the minimum matches the RRIF

On the minimum, RRIF vs LIF is a tie. OSFI: "The minimum annual withdrawal amount is determined under the Income Tax Regulations and the maximum annual withdrawal amount is determined under the Pension Benefits Standards Regulations, 1985." BCFSA says the same for BC LIFs.

The Income Tax Regulations are where the RRIF factors live (s. 7308). Under 71 the factor is 1 / (90 minus your age at the start of the year); from 71 it follows a fixed table.

Sample minimum factors (RRIF and LIF), by age on January 1
Age on January 1Minimum factorMinimum on $100,000
603.33% (1 / 30)$3,333.33
654.00% (1 / 25)$4,000.00
705.00% (1 / 20)$5,000.00
715.28%$5,280.00
755.82%$5,820.00
806.82%$6,820.00

Every age from 55 to 95 is in the RRIF minimum withdrawal table, and you can calculate a LIF minimum in the RRIF calculator with the January 1 balance. The RRIF withdrawal rules page covers the opening year, the spouse age election and payment timing (CRA, Receiving income from a RRIF).

LIF withdrawal rules: the yearly maximum

A RRIF has no withdrawal maximum. A LIF does, and each pension law writes its own formula.

Coin stack between a green floor and a blue ceiling, like LIF withdrawal limits
A LIF has a floor and a ceiling each year

Federal LIFs (OSFI)

The federal maximum is designed to keep an income going for you or your survivor until at least age 90. It is a percentage of the January 1 balance, built on two interest assumptions. The first 15 years use the November average yield on 10-year Government of Canada bonds (Series V122487); the years after that, to the end of the year you turn 90, use 6.00%. For 2026, OSFI uses the November 2025 rate of 3.49%.

Ontario LIFs (FSRA)

For an Ontario LIF under Schedule 1.1 (the post-2008 rules), the maximum for a fiscal year is the greatest of three amounts (FSRA, LIF and LRIF Maximum Annual Income Payment Amount Table):

F uses 6.00% because the CANSIM V122487 rate has been below that, so FSRA's table holds every year unless the rate rises above 6.00%. A first fiscal year under 12 months is prorated, with a part month counted as a full month.

BC LIFs (BCFSA)

In BC, the maximum is the greater of the preceding year's investment return in the LIF and the January 1 balance times the BC Maximum Percentage. In the year a LIF is first set up, the return counts as zero and the balance is the day-one balance. The percentage uses the greater of the November CANSIM V122487 rate (3.49% for 2026) and 6.00% (BCFSA, LIF Maximum Annual Withdrawal).

LIF withdrawal rates for 2026: sample maximums

These sample maximums come straight from each regulator's table. Watch the age in each column header: the three tables count age differently, so one person can land on different rows.

Sample LIF maximums as a percentage of the balance at the start of the year
AgeFederal 2026 (age on December 31, 2025)Ontario (age reached during the year)BC (owner's age)
555.2096%6.45234%6.51%
605.5304%6.77285%6.85%
656.0272%7.25513%7.38%
706.8508%8.01930%8.22%
717.0804%8.22496%8.45%
758.3837%9.33511%9.71%
8011.6128%11.96160%12.82%
8521.3952%19.18515%22.40%

The federal table reaches 100% at 89, Ontario's at 90, and BC's at 89 and over. Full tables: OSFI, FSRA and BCFSA. In Ontario and BC the percentage is only one input: if last year's investment earnings were larger, the maximum is larger.

Example: a federal LIF at 65

Say you were 65 on December 31, 2025 and your federally regulated LIF held $100,000 on January 1, 2026:

Any amount from $4,000.00 to $6,027.20 meets the rules. Put the same $100,000 in an ordinary RRIF and the minimum is still $4,000.00, with no ceiling.

Unlocking: getting money out above the maximum

A lump sum above the LIF maximum generally needs an unlocking option, and each pension law keeps its own short list.

Hand turning a key in a padlock on a box of LIF pension savings
Unlocking is possible only in the cases pension law allows

Federal unlocking (2026)

OSFI's options for federally regulated locked-in plans (OSFI, Unlocking funds from a pension plan or from a locked-in retirement savings plan). The 2026 YMPE (year's maximum pensionable earnings) is $74,600.

Several options require your spouse or common-law partner's attestation on Form 2.

Ontario unlocking

FSRA's non-hardship categories:

Ontario also has a 50% option: within 60 days of transferring money into a Schedule 1.1 LIF, you can withdraw or transfer up to 50% of the money transferred (Form 5.2). You apply through your financial institution. FSRA warns that withdrawn amounts are income, may affect your eligibility for government assistance and lose creditor protection.

BC unlocking

BCFSA: "British Columbia's pension legislation does not allow a 50 per cent one-time unlocking provision" (BCFSA, Unlocking pension funds). BC allows unlocking only in these cases, applied for through your financial institution:

Tax and income splitting

Amounts paid out of a RRIF are taxable when you receive them (CRA, Registered Retirement Income Fund (RRIF)), with tax withheld only on the part above the minimum (see the RRIF withholding tax guide). Ask your financial institution how it handles LIF payments.

At 65, both accounts open up pension income splitting. The CRA says RRIF payments, including LIF payments, are eligible pension income if you are 65 or older at the end of the year, or received them because of a spouse's death (CRA, Pension income splitting).

Frequently asked questions

Is the LIF minimum the same as the RRIF minimum?

Yes for federal and BC LIFs. OSFI and BCFSA both say the LIF minimum is set by the Income Tax Regulations, which also hold the RRIF factors. Under 71 the factor is 1 / (90 minus your age).

What is the most I can take from a LIF in 2026?

It depends on the pension law that governs the LIF and on your age. For a federally regulated LIF, someone who was 65 on December 31, 2025 can take up to 6.0272% of the January 1, 2026 balance. Ontario and BC use their own tables, and can allow more when last year's investment earnings were higher.

Does a RRIF have a maximum withdrawal?

No. An ordinary RRIF has a minimum but no maximum. The CRA says you can withdraw more, but not less than the minimum.

Can I move money from a LIF to a RRIF?

Generally, only through one of the unlocking options in the pension law that governs the LIF. Under federal rules, if you are 55 or older you can transfer up to 50% of a restricted LIF to an RRSP or RRIF within 60 days of the first deposit, and small balances can be moved too. In Ontario, you can withdraw or transfer up to 50% of money moved into a Schedule 1.1 LIF within 60 days of the transfer. BC has no 50% unlocking.

Can I unlock a LIF if I leave Canada?

Under federal rules, yes, once you have not been a Canadian resident for at least 2 calendar years. Ontario requires 24 months since you left Canada, and BC allows unlocking when you leave Canada permanently.

Work out your minimum

The RRIF withdrawal calculator works out the yearly RRIF minimum, which is also the LIF minimum, from a January 1 balance and your age. It does not calculate LIF maximums (use your regulator's table or ask your financial institution), and its withholding and projection figures follow RRIF rules. For a second opinion on your drawdown, you can request a free RRIF drawdown plan review from a licensed financial planner, who may pay us a referral fee (see our disclosure).

Sources

Not financial advice. General information only. Your financial institution calculates your actual LIF minimum and maximum and handles the payments.