How much money can be withdrawn from a life income fund (LIF), restricted life income fund (RLIF) or variable benefit account?
Note: Where information provided below conflicts with the
Pension Benefits Standards Act, 1985 (PBSA) or
Pension Benefits Standards Regulations, 1985 (PBSR), the PBSA or PBSR will govern.
In determining the maximum annual amount of income that may be paid in a given calendar year from a LIF, RLIF or variable benefit account, sections 20.1, 20.3 or 21.1 of the PBSR respectively, require that the following interest assumption be used:
- the monthly average yield on Government of Canada marketable bonds of maturity over 10 years as published by the Bank of Canada (also referred to as Series V122487) for the preceding month of November for the first 15 years
- 6.00% for the years remaining to the end of the year in which the fund or account holder or their survivor, as the case may be, attains 90 years of age.
For the calendar year in which the contract or arrangement is first entered into, the maximum annual amount of income that may be paid must be multiplied by the number of months remaining in that year divided by 12, with any part of an incomplete month counting as one month.
Table 1 below includes information required to determine the maximum annual amount of income that may be paid in 2023. The maximum annual amount of income for 2022 is also provided in Table 2 for your information.
Table 1 – Maximum Annual Amount of Income that May be Paid in 2023
LIF, RLIF and Variable Benefit Account
November 2022 Series V122487 Rate: 3.02%
Age on
December 31, 2022 | Percentage of LIF, RLIF or Variable Benefit Account Balance as at January 1, 2023 |
---|
20 | 4.3237% |
21 | 4.3288% |
22 | 4.3343% |
23 | 4.3401% |
24 | 4.3463% |
25 | 4.3528% |
26 | 4.3598% |
27 | 4.3673% |
28 | 4.3752% |
29 | 4.3836% |
30 | 4.3925% |
31 | 4.4021% |
32 | 4.4122% |
33 | 4.4230% |
34 | 4.4345% |
35 | 4.4468% |
36 | 4.4599% |
37 | 4.4738% |
38 | 4.4887% |
39 | 4.5046% |
40 | 4.5216% |
41 | 4.5397% |
42 | 4.5590% |
43 | 4.5798% |
44 | 4.6019% |
45 | 4.6256% |
46 | 4.6510% |
47 | 4.6783% |
48 | 4.7075% |
49 | 4.7389% |
50 | 4.7726% |
51 | 4.8089% |
52 | 4.8480% |
53 | 4.8901% |
54 | 4.9355% |
55 | 4.9846% |
56 | 5.0377% |
57 | 5.0953% |
58 | 5.1577% |
59 | 5.2256% |
60 | 5.2996% |
61 | 5.3803% |
62 | 5.4686% |
63 | 5.5654% |
64 | 5.6718% |
65 | 5.7891% |
66 | 5.9189% |
67 | 6.0630% |
68 | 6.2236% |
69 | 6.4035% |
70 | 6.6057% |
71 | 6.8346% |
72 | 7.0952% |
73 | 7.3940% |
74 | 7.7395% |
75 | 8.1429% |
76 | 8.6048% |
77 | 9.1390% |
78 | 9.7634% |
79 | 10.5025% |
80 | 11.3910% |
81 | 12.4785% |
82 | 13.8397% |
83 | 15.5919% |
84 | 17.9305% |
85 | 21.2075% |
86 | 26.1266% |
87 | 34.3299% |
88 | 50.7438% |
89 | 100.0000% |
Table 2 – Maximum Annual Amount of Income that May be Paid in 2022
LIF, RLIF and Variable Benefit Account
November 2021 Series V122487 Rate: 2.03%
Age on
December 31, 2021 | Percentage of LIF, RLIF or Variable Benefit Account Balance as at January 1, 2022 |
---|
20 | 3.9033% |
21 | 3.9081% |
22 | 3.9133% |
23 | 3.9188% |
24 | 3.9246% |
25 | 3.9308% |
26 | 3.9374% |
27 | 3.9444% |
28 | 3.9519% |
29 | 3.9598% |
30 | 3.9682% |
31 | 3.9772% |
32 | 3.9868% |
33 | 3.9970% |
34 | 4.0079% |
35 | 4.0195% |
36 | 4.0318% |
37 | 4.0450% |
38 | 4.0591% |
39 | 4.0741% |
40 | 4.0901% |
41 | 4.1072% |
42 | 4.1256% |
43 | 4.1452% |
44 | 4.1662% |
45 | 4.1886% |
46 | 4.2127% |
47 | 4.2386% |
48 | 4.2663% |
49 | 4.2961% |
50 | 4.3282% |
51 | 4.3627% |
52 | 4.3998% |
53 | 4.4399% |
54 | 4.4832% |
55 | 4.5301% |
56 | 4.5808% |
57 | 4.6359% |
58 | 4.6957% |
59 | 4.7608% |
60 | 4.8318% |
61 | 4.9094% |
62 | 4.9944% |
63 | 5.0878% |
64 | 5.1907% |
65 | 5.3045% |
66 | 5.4306% |
67 | 5.5710% |
68 | 5.7280% |
69 | 5.9044% |
70 | 6.1036% |
71 | 6.3300% |
72 | 6.5890% |
73 | 6.8878% |
74 | 7.2356% |
75 | 7.6448% |
76 | 8.1130% |
77 | 8.6536% |
78 | 9.2849% |
79 | 10.0316% |
80 | 10.9283% |
81 | 12.0250% |
82 | 13.3967% |
83 | 15.1612% |
84 | 17.5151% |
85 | 20.8118% |
86 | 25.7586% |
87 | 34.0054% |
88 | 50.5024% |
89 | 100.0000% |