As most of us know, old age is inevitable. Thus, one must plan for their retirement while in their 30s and 40s. As is the case with most financial products, well begun in half done even in retirement savings plan. Today, fortunately, people have started investing in retirement/pensions plans at an early age. This helps them to reap good benefits at a later stage in life.

The various benefits that a retirement plan provides are:

- Regular inflow of income: Pension plans or retirement saving plans help the insured individual secure a regular flow of income post retirement. One can choose a plan that best suits his/her requirement. There are traditional pension plans that provide you bonuses and unit-linked insurance plans (ULIPs) that allow you to take benefit of the growing markets.

- Tax benefits: Pension plans are insurance plans that offer tax benefits. Thus, one can save on tax if he/she opts to buy these plans at an early age. You need to however understand the policy document clearly to know the ways of saving tax. These provisions are made under Section 80C of the Income Tax Act.

- Availability of funds: There are retirement plans that offer you the provision of withdrawing some part of your pension fund as lump sum payment. This often happens at times of need for large expenses that might cause a huge dent in your savings. The insured individual can utilize these funds to build a house or buy a property.