A LIF acts as an extension of a locked-in retirement account (LIRA). It allows you to periodically withdraw a portion of your savings accumulated in a pension fund and receive retirement income as you need it. A LIF is similar to a RRIF, except for the source of the funds and the withdrawal of a maximum annual amount.
You are required by law to withdraw a minimum amount from your LIF, but you cannot withdraw more than the maximum annual amount. However, it is now possible to withdraw a higher annual income in exceptional situations.