A pension plan is the retirement amount, which an individual gets from their insurance companies on a regular basis or in the form of a lump sum. There are various types of such plans available in the country offered by various companies. However, increased choices may confuse and person and make it difficult for individuals to choose one which works the best. Through regular investments, it is possible to develop a sizable corpus, which on maturity gives a regular monthly income for taking care of your post employment years. The sum you gain is can be termed as either the annuity or pension.