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Lif Payments

Lif Payments

Minimums and Maximums

Life Income Fund (LIF) withdrawal percentages for 2018

Background and new rates effective January 1, 2018

Manulife and other financial institutions are required to calculate a client’s maximum income each year from Life Income Funds (LIFs) and Restricted Life Income Funds (RLIFs) based on the client’s age on January 1 and the CANSIM rate percentage factors.

The CANSIM rate is set monthly by the Government of Canada based on that month’s average rate for long-term Government of Canada bonds. The formula used to calculate maximum payments is based on the previous year’s November 30th CANSIM rate. All jurisdictions, with the exception of Federal/PBSA, default to a minimum 6% CANSIM rate if the rate falls below that amount. Federal maximums are calculated using the actual CANSIM rate, no matter how
low it falls.

2018 LIF Minimum/Maximum Withdrawal Percentages

Age as at:
Jan, 2018
Minimum withdrawal percentage (non-qualified)   Maximum withdrawal
percentage for: Ontario 1
New Brunswick Saskatchewan 2
Newfoundland 2 British Columbia 3 
Alberta 4
Maximum withdrawal percentage for: 

Quebec
Manitoba 5
Nova Scotia
 

Maximum withdrawal percentage for: Federal/PBSA
(LIF & RLIF)
50 2.50% 6.27% 6.10% 4.38%
51 2.56% 6.31% 6.10% 4.42%
52 2.63% 6.35% 6.10% 4.46%
53 2.70% 6.40% 6.10% 4.50%
54 2.78% 6.45% 6.10% 4.54%
55 2.86% 6.51% 6.40% 4.59%
56 2.94% 6.57% 6.50% 4.64%
57 3.03% 6.63% 6.50% 4.69%
58 3.13% 6.70% 6.60% 4.75%
59 3.23% 6.77% 6.70% 4.82%
60 3.33% 6.85% 6.70% 4.89%
61 3.45% 6.94% 6.80% 4.97%
62 3.57% 7.04% 6.90% 5.06%
63 3.70% 7.14% 7.00% 5.15%
64 3.85% 7.26% 7.10% 5.25%
65 4.00% 7.38% 7.20% 5.37%
66 4.17% 7.52% 7.30% 5.49%
67 4.35% 7.67% 7.40% 5.63%
68 4.55% 7.83% 7.60% 5.79%
69 4.76% 8.02% 7.70% 5.97%
70 5.00% 8.22% 7.90% 6.17%
71 5.28% 8.45% 8.10% 6.40%
72 5.40% 8.71% 8.30% 6.65%
73 5.53% 9.00% 8.50% 6.95%
74 5.67% 9.34% 8.80% 7.30%
75 5.82% 9.71% 9.10% 7.71%
76 5.98% 10.15% 9.40% 8.15%
77 6.17% 10.66% 9.80% 8.72%
78 6.36% 11.25% 10.30% 9.35%
79 6.58% 11.96% 10.80% 10.09%
80 6.82% 12.82% 11.50% 10.99%
81 7.08% 13.87% 12.10% 12.08%
82 7.38% 15.19% 12.90% 13.45%
83 7.71% 16.90% 13.80% 15.22%
84 8.08% 19.19% 14.80% 17.57%
85 8.51% 22.40% 16.00% 20.86%
86 8.99% 27.23% 17.30% 25.81%
87 9.55% 35.29% 18.90% 34.05%
88 10.21% 51.46% 20.00% 50.53%
89 10.99% 100.00% 20.00% 100%
90 11.92% 100.00% 20.00% 100%
91 13.06% 100.00% 20.00% 100%
92 14.49% 100.00% 20.00% 100%
93 16.34% 100.00% 20.00% 100%
94 18.79% 100.00% 20.00% 100%
95 20.00% 100.00% 20.00% 100%

NOTE: Quebec, Alberta, Manitoba, New Brunswick & British Columbia pension legislation permits LIF clients who begin a LIF in the middle of a calendar year with funds transferred from a LIRA or pension plan to take the FULL maximum payment for the year. First year payments under the other jurisdictions must be prorated based on the number of months the LIF was in force.

1) Ontario New LIF, Ontario Old LIF, Ontario LRIF maximum calculation is based on the greater of a) the result using the factor and b) the previous year’s investment returns.
2) Saskatchewan and Newfoundland LIFs must be converted to a life annuity at age 80.
3) British Columbia LIF maximum calculation is the greater of 1) the result using the applied factors and 2) the previous year’s investment returns under the same LIF contract.
4) Alberta LIF maximum calculation is based on the greater of 1) the result using the new factors or 2) the previous year’s investment returns.
5) Manitoba LIF maximum calculation is based on the greater of a) the result using the factor and b) the previous year’s investment returns + 6% of the value of all transfers in from a LIRA or Pension Plan during the current year.

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