A Life Income Fund (LIF) is an account, similar to a RRIF with the exception that funds are locked-in, that is designed to pay out annual income during your retirement. LIRAs typically convert into LIFs so a LIF allows you to withdraw the funds, within a defined minimum and maximum, that you've previously saved in your LIRA as income.

Before you begin

• You can open as many individually owned managed LIFs as you like. 
• When you open a managed LIF, you can choose a risk level. You can update your risk level at any time.
• You can only open one self-directed LIF under one jurisdiction.
• People living in Saskatchewan cannot open LIFs. Please contact our support team to learn about your options.
• Jurisdictions may have differing rules to be aware of, such as withdrawal amounts and the age of retirement.
• There is a minimum and maximum withdrawal amount that you must stay within for every year as long as you have a funded LIF. Wealthsimple will help you stay within these limits, and this amount will be added to your total taxable income for the following calendar year.
• You don’t need to withdraw in the first calendar year that the LIF is open and funded from a LIRA rollover.
• We don't currently offer Manitoba or Saskatchewan PRRIF, or federal RLIF/RLSP accounts.

Funding a LIF with Wealthsimple

Unlike other investment accounts, you cannot add funds directly into a LIF. Instead, you can only fund a LIF by transferring in an existing LIF to Wealthsimple, or rolling over an existing Wealthsimple LIRA. 

What you should know before initiating a transfer

You’ll need to withdraw the minimum withdrawal amount before moving your account to Wealthsimple. You can either withdraw the funds:

• before you initiate your transfer
• after you submit your transfer request

In both cases, you’ll need to tell your institution that you want to transfer your account and they’ll help you with the withdrawal.

Open a LIF with Wealthsimple

Once you’re ready to open an LIF, follow these steps:

1. Log in to the Wealthsimple mobile app.
2. Under Accounts, scroll down and select + Add an account.
3. Select Open a new account.
4. Choose the LIF account type.
5. Select your Jurisdiction.
   
   Tip: If you're unsure which jurisdiction your account was created in, you can check your account statement or reach out to your financial institution for help.
6. Follow the prompts to finish setting up your LIF.

Roll over a LIRA into a LIF

You can roll over a LIRA account into a LIF account once you reach retirement age. The retirement age is defined by each jurisdiction. To roll over a LIRA with Wealthsimple into a LIF, contact our support team.

Frequently asked questions

What are the fees in a managed LIF with Wealthsimple?
Wealthsimple’s standard management fee is 0.5%. For Premium and Generation clients, this fee drops down to 0.4%. To learn more about fees, click here.

Can I hold cash in a managed LIF instead of investing my funds?
No, there is no option to hold cash in managed accounts. However, you can consider moving your portfolio to our high-interest savings ETF option for a no-risk investing alternative.

How do withdrawals work?
Once you’ve retired, you can withdraw between a min/ max amount under a given frequency in a year under the appropriate tax withholding rules. Only the minimum is mandatory; any sum in excess, up to the maximum, is optional and has tax implications. Learn more about LIF withdrawals.

Does Wealthsimple offer Life Annuities?
Wealthsimple does not currently support Life Annuities.