Often the process of planning and analyzing takes ample of time for improvising to take its course. Indeed   planning    and understanding the concepts on a real time basis is a crucial aspect but the whole process should be devised to mere perfection. A normal professional spends most of his life earning bread and butter for his loved ones. Basking in the sun, toiling to goals is all that captivates the mind. Spending almost whole life in doing so, a vital question is often undermined. WHAT NEXT? Old age is inevitable and such age poses a lot of challenges and questions ahead. Living a whole life with financial independence, a sudden dependence can    prove to be heart-breaking.

Pension Plans which aim towards providing a stable and financially independent latter part of life can be a perfect answer for growing dependence. Most people tend to find insurance complex, when on ground level it's just an investment which promises to pay you back when you require it the most. Like any other financial institutions the money paid by the insuree to the insurer is paid back after a certain amount of time and certain additional benefits are provided with the same.

Pension plans are devised for people who work in Multinationals and other private firms , the idea behind the same is to provide them with financial independence even after retiring from work. It works more or less on the lines of government firms which provide pension to its employees after retirement.

Pension plans are of many types and is divided into two main stages: First is the initial stage of regular payment of premiums for a fixed amount of time or age ,as agreed upon with the insurance company. These rates of premiums are dependent on the plan a person opts for and is approved by IRDA and SEBI.

The second stage emphasizes upon giving a fruitful return for the same. After the age of agreement is obtained, the insurance firms make sure that regular pension is given to the person. Depending upon the rate of premiums and money invested so far. Simple mathematical calculation determines the pension rate provided. A person can also withdraw lump sum amount of money up to 33% at one time in case of emergencies.

This must be noted that the pension is not provided unless the agreed upon age of payment of premiums is reached, and payment of premiums from the insuree side is provided on regular basis.

For people who are professionally sound and like to be financially independent. Pension plans can be the best option for them to opt for.