Simply put, a pension plan is something that you pay into whilst you’re younger and earning money by working, which then pays you money when you’re older and not working anymore – so you can survive, and ideally thrive (if you’ve saved enough and invested wisely), when you are retired. Unless you already have more money than you will ever need for the rest of your life, you need a pension plan! How else will you pay the bills and buy the things you want and need when you are too old to work anymore?