When a Registered Retirement Savings Plan (RRSP) converts into a Life Income Fund (LIF), you may want to control how much is withdrawn each year—whether it’s the minimum, the maximum, or a custom amount.
How to Set Maximum or Custom LIF Withdrawals
Once the RRSP converts to a LIF (automatically on January 1 of the year the client turns 72, or earlier if manually converted), you can specify the withdrawal behaviour using the Excess LIF Withdrawal toggle.
Where to find it
Financial Insights → Toggles → Savings / Investments → Excess LIF Withdrawal
What the Excess LIF Withdrawal Toggle Allows You To Do
1. Withdraw the Maximum Amount (Automatic)
Select “Withdraw Maximum Amount” to have Planworth automatically withdraw the maximum LIF amount permitted based on jurisdictional rules each year.
Planworth handles:
Annual recalculation of maximum limits
Market value changes
Jurisdiction-specific rules
No manual input required.
2. Enter a Custom Withdrawal Amount
You may instead choose:
A specific annual withdrawal amount
Whether that amount includes the minimum or is in addition to the minimum
This gives you flexibility when modeling spending strategies or income-smoothing.
Note: The toggle must be applied after the account becomes a LIF in the scenario. It cannot be configured at the moment of conversion.
Example: Using the Excess LIF Withdrawal Toggle
The toggle interface allows you to:
✔ Choose “Withdraw the Maximum”
✔ Choose a fixed dollar amount
✔ Choose “Withdraw the Minimum + Extra Amount”