LIF temporary income information

• You may receive a temporary income if:
  • you are under the age of 65 on January 1^st of the year you apply for the temporary income withdrawal, and
  • the total pension income from all LIFs (excluding any withdrawals due to financial hardship from a retirement savings arrangement, for the calendar year in which this application is made), LRIFs, life annuities and non-CPP pension plans you receive for the year that you apply is less than 40% of the year’s YMPE. 

• *What’s YMPE? It stands for Yearly maximum pensionable earnings. The Canadian government sets the YMPE figure each year. This determines the maximum amount of income used to calculate contributions to the Canada or Quebec Pension Plan (CPP or QPP). The YMPE specifies the earnings amount that can be used in calculating pension contributions for each year. See a list of the YMPE figures set by year.

• What if you meet the above conditions? Then you may withdraw the difference between 40% of the YMPE for the calendar year minus the total pension income from all LIFs, LRIFs, life annuities and non-CPP pension plans that you will receive in the year in which the application is made. Remember, the temporary income you get will be in addition to the total pension income you’ll get from all:
  • LIFs
  • RIFs
  • life annuities
  • pension plans governed by Newfoundland and Labrador pension legislation or established by or governed by an Act of Canada or a province. 

• As an example, let’s say the CRA set a YMPE of $68,500. To find out 40% of that figure, you’ll multiply 68,500 x  0.40, which equals $27,400. If you earn less than that amount ($27,400) for the year, you can then subtract however much you earn from all your LIFs, LRIFs, life annuities and pensions (except your CPP) from that amount. So if you earned $10,000 in LIFs and pensions, you’ll subtract that from $27,400 and be left with $17,400. That’s the amount you could potentially withdraw the year you apply.

• At the beginning of the plan year of the contract, you must submit Form 8 - Application to receive a temporary income.
• If you have a spouse or a cohabiting partner,  they must consent to the payment of temporary income as a part of Form 8 - Application to receive a temporary income.
• After the year in which you opened the LIF, you must take your annual minimum in cash. The minimum amount payable from the LIF cannot be transferred into a registered retirement saving plan. However, you may be able to move the difference between the maximum and the minimum to registered retirement savings plan. Reach out to your advisor to determine eligibility.
• You can't elect a temporary income and then make additional withdrawals within the same year.

For more information:

• Newfoundland website
• Application forms (under Pensions)

• You can make an application using Form 10 - Application for temporary income from a LIF. You must send this application to your advisor for payment of a temporary income under the LIF.
• The following conditions apply:
  • You must be at least age 55 but under age 65.
  • The temporary income has to be taken in cash.
  • Spousal consent isn't required.
  • You must calculate the temporary income amount using the calculator available on the Nova Scotia website.

For more information:

• Nova Scotia website
• Application forms

As of January 1, 2025, temporary income is available only for those under age 55.

Read the full list of amendments related to life income funds as of 2025 on Retraite Quebec.

If you’re under age 55:

• You can draw a temporary income each year.
• To qualify for a temporary income, you must meet the following conditions:
  • be under age 55 at the time the application for income is filed
  • have only one LIF
  • any other income you expect to receive the year after you apply, other than Family Allowance or support payments, must not exceed 50% of the YMPE minus the estimated income for the year

Please note: an application for a temporary income is valid only for the year in which it’s made.

• You can not receive both a maximum life income and a temporary income in the same year.
• To determine the amount available for temporary income and the forms required select Quebec LIF Quick Calc.
  • Tip: For the purpose of the value of "other income" in the Quick Calc inputs, the regular LIF income for you must be considered zero. That’s because you’ll receive zero LIF income if you’re getting temporary income and are under age 54. You can not receive both at the same time if you’re under age 54.
• You apply to the administrator for temporary income by completing the following:
  • Schedule 0.5 - Temporary LIF income (under age 55), and
  • Schedule 0.9.1 - Transfer to a LIF (under age 55)
• You’ll receive payment for the temporary income amount monthly.
• The monthly payment you receive can not exceed 50% of the YMPE minus estimated income that you intend to receive for the year divided by 12.

If you’re age 55 or older at the time of application:

As of January 1, 2025, you cannot qualify for temporary income if you’re age 55 or older. However, there are no maximum withdrawal limits after this age either. So, you are free to withdraw additional funds without limit once you are age 55 or older. 

Note: 

• Minimum withdrawals will continue to apply annually after the year you open a LIF. You must include any amount withdrawn from your LIF as taxable income. 
• An application for a temporary income is valid only for the year in which it’s made. 

For more information:

• Retraite Québec - English website
• Application forms - French only