Wants to enjoy life while he can

Zoomer | January 1st, 2006

Question: I left my employer two years ago at 55 to take care of my wife (disabled) and was able to take with me the “locked in” pension funds. I invested the money and converted it into a monthly pension (LIF) but due to health and other reasons, we would like to be able to withdraw larger amounts and enjoy life while we can!

I believe you wrote an interesting article in Fifty-Plus magazine a few years ago on the subject, but I was wondering if the Ontario legislation has changed since or will change soon. Thank you. – J.-P. S.

Answer:

Ontario has broadened the conditions for withdrawing money from a locked-in plan. “Enjoying life” is not one of them, but health-related withdrawals may qualify. The minimum amount for a withdrawal application is $500 and there is a fee of 1% of the amount withdrawn, if approved. For conditions in other provinces, check with the provincial organization that administers pension plans. – G.P.