A Pension Plan typically has two phases:
Accumulation Phase: You make regular contributions or premiums, which grow over time through interest or investments.
Payout Phase: Upon retirement, the accumulated amount is used to provide regular income, either as annuity payments or a lump sum, depending on the plan's terms and your choice.

There are several types of pension plans, including:
Defined Benefit Plans: Provide a guaranteed income based on factors like salary and years of service.
Defined Contribution Plans: Contributions are made to an individual account, and the retirement income depends on the account's growth.
Immediate Annuities: Start providing income payments immediately after a lump sum investment.
Deferred Annuities: Begin payouts at a future date, allowing the investment to grow before payments start.

Contributions to a pension plan may be eligible for tax deductions, providing immediate tax relief. Additionally, the income received during retirement may benefit from tax advantages, such as tax-free withdrawals up to a certain limit or reduced tax rates, depending on local tax laws.

Many pension plans offer flexibility in terms of contributions and payouts. You may be able to increase or decrease your contributions, change your payout frequency, or adjust annuity options based on your changing financial needs and goals. It’s important to review your plan details and consult with your insurance agent for specific options and conditions.