A life income fund, or LIF, is similar to a RRIF. However, LIFs are only for converted locked-in plans such as LIRAs. LIFs are a maturity option for locked-in funds and are meant to provide you with retirement income.

While RRIFs only have a minimum withdrawal amount each year, LIFs are subject to both an annual minimum withdrawal and an annual maximum withdrawal. The maximum payment stipulation is meant to ensure you have funds for life and cannot deplete the plan too early. A life annuity-based formula is used to calculate these amounts for you. Once you reach the age of 80, the funds in your LIF must be used to purchase a life annuity.