LIRA / LIF Withdrawal Calculator

LIRA and LIF Accounts: Drawing Income from a Locked-In Pension

A Locked-In Retirement Account (LIRA) holds money that originated from a registered pension plan — typically because you left an employer with a defined-contribution or defined-benefit pension and transferred the commuted value out. Unlike an RRSP, you cannot make new contributions to a LIRA and you cannot withdraw money directly from it. To access the funds for income, you must first convert it to a Life Income Fund (LIF) or, in Saskatchewan, a Prescribed Retirement Income Fund (PRRIF). This conversion is available starting at age 55 in most jurisdictions, and must be done by December 31 of the year you turn 71.

Once converted to a LIF, you must withdraw at least the minimum each year (the same percentage as the RRIF schedule) and no more than the maximum allowed by your jurisdiction. The maximum is what makes a LIF different from a RRIF: it preserves the pension nature of the money. Most jurisdictions calculate the maximum using a formula based on age and a published reference rate (often the long-term Government of Canada bond yield). Provinces also offer a one-time unlocking option — typically 50% of the LIRA balance at the time of first conversion — that can be transferred to an RRSP or RRIF with no withdrawal cap.

2026 LIF Maximum Withdrawal Rates by Age (Ontario, Alberta, BC, Manitoba, Quebec)

Federal LIF rates differ slightly from most provinces and are typically lower at younger ages but rise more sharply after age 80. Saskatchewan eliminated the LIF maximum entirely by converting all LIFs to PRRIFs — meaning Saskatchewan-regulated locked-in money can be withdrawn at any pace once you reach age 55, the same as a regular RRIF. Newfoundland & Labrador uses the federal LIF formula. Quebec, Ontario, Alberta, BC, Manitoba, New Brunswick, and Nova Scotia use a similar “Quebec formula” that produces comparable rates. PEI does not have its own pension legislation; PEI pension holders fall under federal rules.

All LIF withdrawals are taxed as ordinary income in the year received. Your financial institution withholds income tax on amounts above the minimum (10% up to $5,000, 20% on $5,001-$15,000, 30% over $15,000, with different rates in Quebec). Strategic planning often involves coordinating LIF income with CPP, OAS, and other RRSP/RRIF withdrawals to manage your marginal tax bracket and avoid the OAS clawback that starts at $93,454 of net income in 2026. The 50% one-time unlock at age 55 is often the most flexible planning move — it converts half your locked-in money into regular RRIF or RRSP funds with no maximum constraint, while still preserving creditor protection on the locked-in half.