What is the maximum withdrawal from a BC LIF?
Under British Columbia's Pension Benefits Standards Act and its Regulation, the maximum is the greater of the previous fiscal year's investment earnings, including unrealized gains and losses, and the formula amount C ÷ F. The rate inside F is the greater of 6.00% and the November CANSIM V122487 long-term Government of Canada bond yield for the first fifteen years, then 6.00%. That yield has been under 6% for decades, so the floor governs and BC's percentages match Ontario's and Alberta's to the fourth decimal.
2026 BC LIF maximum withdrawal table
These percentages apply to the balance at the start of the fiscal year, and are shared with Ontario and Alberta.
| Age on Jan 1 | Age attained during year | Maximum, % of Jan 1 balance |
|---|---|---|
| 55 | 56 | 6.5070% |
| 56 | 57 | 6.5659% |
| 57 | 58 | 6.6295% |
| 58 | 59 | 6.6983% |
| 59 | 60 | 6.7729% |
| 60 | 61 | 6.8537% |
| 61 | 62 | 6.9415% |
| 62 | 63 | 7.0370% |
| 63 | 64 | 7.1412% |
| 64 | 65 | 7.2551% |
| 65 | 66 | 7.3799% |
| 66 | 67 | 7.5169% |
| 67 | 68 | 7.6678% |
| 68 | 69 | 7.8345% |
| 69 | 70 | 8.0193% |
| 70 | 71 | 8.2250% |
| 71 | 72 | 8.4548% |
| 72 | 73 | 8.7129% |
| 73 | 74 | 9.0042% |
| 74 | 75 | 9.3351% |
| 75 | 76 | 9.7135% |
| 76 | 77 | 10.1495% |
| 77 | 78 | 10.6566% |
| 78 | 79 | 11.2525% |
| 79 | 80 | 11.9616% |
| 80 | 81 | 12.8177% |
| 81 | 82 | 13.8700% |
| 82 | 83 | 15.1921% |
| 83 | 84 | 16.8995% |
| 84 | 85 | 19.1852% |
| 85 | 86 | 22.3959% |
| 86 | 87 | 27.2256% |
| 87 | 88 | 35.2934% |
| 88 | 89 | 51.4563% |
| 89 | 90 | 100.0000% |
| 90 | 91 | 100.0000% |
What is the minimum you must withdraw?
The minimum is federal and identical in every province, because a LIF is a RRIF with extra restrictions layered on top. Section 7308 of the Income Tax Regulations sets it, applied to the balance at the start of the fiscal year and driven by your age on January 1 — not your age at year end.
- Age 70 or under on January 1: the factor is 1 ÷ (90 − age).
- Age 71 or over: the prescribed table applies — 5.28% at 71, rising to 20.00% at 95 and above.
- In the year the fund is entered into, the minimum is nil. Nothing has to come out in year one.
You may elect to use a younger spouse's age to lower the minimum, but the election must be made before any payment leaves the fund and cannot be revisited. It has no effect on the maximum, which is keyed to the owner reaching 90.
Can you unlock 50% of a BC LIF?
No. This is the most common piece of misinformation about British Columbia locked-in money, and it is worth being blunt: BC has no one-time 50% unlocking provision. If a source tells you that you can move half of a BC LIF to an RRSP at 55, it is describing the federal rule, or Ontario's, and applying it to the wrong jurisdiction.
BCFSA lists five routes out of locked-in money in British Columbia, each assessed by your financial institution rather than granted automatically:
- Financial hardship, under its own separate process and categories.
- Small benefits — total holdings under 20% of the YMPE ($14,920 in 2026) if you are under 65.
- Age 65 with a small entitlement — the threshold rises to 40% of the YMPE ($29,840).
- Permanent departure from Canada, once 24 months have passed since you left.
- Shortened life expectancy, certified by a physician.
The practical consequence is that a BC LIF holder has less flexibility in the first year than an Ontarian with the same balance — but also that the full amount stays in the fund, so the first-year maximum rests on the whole balance rather than half of it.
What else is different about a BC LIF?
- Available from age 50, like Alberta and five years earlier than Ontario.
- No first-year proration. A fund opened in December still has the full annual maximum available, where Ontario and the federal rules would cut it to the months remaining.
How much tax is withheld?
Nothing is withheld on the minimum. On the amount above it, a single rate applies to that whole amount — outside Quebec, 10% up to $5,000, 20% over $5,000 to $15,000, and 30% above $15,000. These are cliffs, not brackets: $15,000 above the minimum is withheld $3,000, while $15,000.01 is withheld $4,500.
Withholding is only a prepayment. The entire withdrawal is taxable income, so what you finally owe depends on your total income, credits and province. If you draw only the minimum, nothing has been prepaid at all — the bill arrives at filing.
How does BC compare with the other jurisdictions?
| BC | Ontario | Alberta | Federal | |
|---|---|---|---|---|
| Maximum at 65 (age Jan 1) | 7.38% | 7.38% | 7.38% | 6.03% |
| Rate floored at 6% | Yes | Yes | Yes | No |
| Prior-year earnings alternative | Yes | Yes | Yes | No |
| LIF available from | 50 | 55 | 50 | No minimum |
| One-time 50% unlocking | None | From the LIF | From the LIRA | Via RLIF at 55+ |
| First-year proration | No | Yes | No | Yes |
Which set applies depends on the jurisdiction that regulated the original pension plan, not where you live now.
Frequently asked questions
What is the maximum withdrawal from a BC LIF in 2026?
British Columbia's LIF maximum is the greater of the previous fiscal year's investment earnings and the formula C divided by F, and the percentages are identical to Ontario's and Alberta's because BC also floors the reference rate at 6.00%. As a percentage of the January 1 balance it is 6.5070% at age 55 on January 1, 7.3799% at 65 and 8.4548% at 71, reaching 100% in the year you turn 90.
Can you unlock 50% of a BC LIF?
No. British Columbia has no one-time 50% unlocking provision of any kind. BCFSA permits unlocking only for financial hardship, small benefits, age 65 with a small entitlement, permanent departure from Canada, or shortened life expectancy. Any source describing a 50% transfer at age 55 in BC is applying the federal or Ontario rule to the wrong jurisdiction.
At what age can you open a BC LIF?
Age 50, the same as Alberta and five years earlier than Ontario's minimum of 55.
Does BC prorate the LIF maximum in the first year?
No. British Columbia has no first-year proration, so a LIF opened part-way through the year still has the full annual maximum available. Ontario and the federal rules both prorate to the months remaining, counting a partial month as a full month.
Is the BC LIF minimum withdrawal different?
No. The minimum is set federally by section 7308 of the Income Tax Regulations and is identical across Canada. Below age 71 the factor is 1 divided by (90 minus your age on January 1); from age 71 the prescribed table applies, from 5.28% up to 20.00% at 95 and above.
The rules for other jurisdictions
Locked-in pension money follows the rules of the jurisdiction that regulated the original pension plan — not the province you live in now. If you moved provinces after leaving the employer, check which of these applies to you.