Annuity pension plans are a popular retirement insurance option and choosing the right one can determine your retirement income. There are two types of annuity plans, deferred annuity and immediate annuity and your choice will depend on your risk profile, financial needs and present annual income. Deferred annuity involves a saving or accumulation stage until retirement after which the pension payout starts and this is suitable for those who do not need pension payments right away. Immediate annuity starts the payout in the same year as lump sum premium payment and this is ideal for those who are close to retirement.