Maximize LRIF withdrawals

Question: Where can I look to find a table of percentages of maximum withdrawals from a LRIF starting at age 55? – D.M.


There is no such table because the maximum annual withdrawal from a LRIF (locked-in retirement income fund) is not fixed. To use Ontario as an example (LRIF rules are regulated by the provinces), the maximum amount that can be withdrawn each year is “the greater of the minimum required by the Income Tax Act or the previous year’s actual investment return”. So if the return on the fund does not exceed the minimum legal withdrawal (which is the same for a RRIF, LIF or LRIF), then that minimum becomes your maximum for the year as well. However, if your investments within the LRIF perform extremely well, you could take out the full amount of the gain.

I’m not sure this is great public policy, as it may encourage some people to invest their LRIF money more aggressively than is prudent for their age. But those are the rules. – G.P.