LIF Maximum Annual Withdrawal

This section describes the maximum amounts payable from a LIF.

• Life Income Fund (“LIF”) interest rate

  Long Term (10+ Years) Marketable Government of Canada Bonds (Average Yields) CANSIM Series V122487 — November of Prior Year.

  Year	Rate
  2007	4.03%
  2008	4.22%
  2009	4.00%
  2010	3.84%
  2011	3.60%
  2012	2.61%
  2013	2.20%
  2014	3.01%
  2015	2.36%
  2016	2.17%
  2017	2.06%
  2018	2.16%
  2019	2.39%
  2020	1.57%
  2021	1.06%
  2022	2.03%
  2023	3.02%
  2024	3.39%
  2025	3.26%
  2026	3.49%

• Calculation formulas

  Calculate the BC LIF Maximum Withdrawal Factors using the following formulas:

  T = [90 minus the Owner’s age] and;
  R = the greater of the rate shown above and 6.00%
  
  The factor “F” refers to the value on the first day of the fiscal year (which after the initial year will always be January 1) of a $1/year term certain annuity to age 90.

  (a) Use this formula to calculate “F” for all ages less than 75:
  

  

  (b) Use this formula to calculate F for all ages 75 and older:

  

  The maximum withdrawal amount is calculated as the greater of:

  1. The preceding year’s investment return in the LIF; and
  2. The amount determined by taking the LIF balance at the beginning of the year and multiplying it by the BC Maximum Percentage shown in the table below.

  NOTE: When a LIF is first established, A is 0 and B is the LIF balance on the day the LIF is created.

• B.C. Maximum Percentage by age

  Age	F	BC Maximum Percentage (1/F)	Age	F	BC Maximum Percentage (1/F)
  50	15.9491	6.27%	70	12.1581	8.22%
  51	15.8460	6.31%	71	11.8276	8.45%
  52	15.7368	6.35%	72	11.4773	8.71%
  53	15.6210	6.40%	73	11.1059	9.00%
  54	15.4982	6.45%	74	10.7122	9.34%
  55	15.3681	6.51%	75	10.2950	9.71%
  56	15.2302	6.57%	76	9.8527	10.15%
  57	15.0840	6.63%	77	9.3838	10.66%
  58	14.9291	6.70%	78	8.8869	11.25%
  59	14.7648	6.77%	79	8.3601	11.96%
  60	14.5907	6.85%	80	7.8017	12.82%
  61	14.4062	6.94%	81	7.2098	13.87%
  62	14.2105	7.04%	82	6.5824	15.19%
  63	14.0032	7.14%	83	5.9173	16.90%
  64	13.7834	7.26%	84	5.2124	19.19%
  65	13.5504	7.38%	85	4.4651	22.40%
  66	13.3034	7.52%	86	3.6730	27.23%
  67	13.0416	7.67%	87	2.8334	35.29%
  68	12.7641	7.83%	88	1.9434	51.46%
  69	12.4699	8.02%	89+	1.0000	100.00%

For information on minimum withdrawal factors for Registered Retirement Income Funds, please contact the Canada Revenue Agency.