A LRIF provides people with Newfoundland and Labrador regulated pension funds a flexible income
If you have Newfoundland and Labrador regulated locked-in pension funds, a LRIF allows you to convert those funds into retirement income while deferring taxes.
Funds can be transferred to a LRIF from a workplace pension plan when you leave employment at or before retirement. Funds can also be transferred to a LRIF from a LIRA or LIF.
- You can only transfer money from a LRIF after you turn 55 (or the earliest date you are entitled to a pension under your former workplace pension plan)
- 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
- Control over income and investments
- Growth potential
- Death benefit (any money left over goes to whomever you choose)
- 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 or common law partner's consent may be required
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.