Q&A: Retiring at 55
Question: I am 53 years old and I have about $100,000 in a
self-administered locked-in RRSP and about $200,000 in a regular RRSP account.
I am thinking of retiring at age of 55. Is that true that in order to withdraw
some money out of the locked-in account, I have to convert it into a Life Income
Fund at age of 55 or older? Also, will there will be a maximum and a minimum
withdrawal limit, set by the Quebec and federal governments? – P.M., Montreal.
Gordon Pape answers: The rules governing LIFs vary depending
on who has jurisdiction over your pension money. I have no way of knowing whether
that is Quebec or the federal government in your case, so you need to check.
However, generally you are correct – in order to get money from the locked-in
account, you will have to convert it to a LIF. And yes, there are annual minimum
and maximum withdrawals. The minimum is the same as that applied to RRIFs; the
maximum is determined by the governing pension body.