A term plan is different in nature from a retirement plan. Some of the major differences include:A term plan is a pure and simple protection plan that guarantees payment of a definitive death benefit, in case of your demise in the specified term. A term plan does not include any saving or investment component. On the other hand, a retirement plan is a combination of an insurance plan and investment.By investing in a retirement pension plan, you save money for the future, while allowing it to grow as you pay regular premiums. A term plan has no saving or investment option and can only provide adequate life cover at affordable rates and no savings for the future.A term plan offers a guaranteed death benefit in case of your untimely demise. However, a retirement plan offers no death benefit but ensures a regular stream of income for you. Moreover, upon maturity of the pension scheme, you or the nominee (in case of the untimely demise of the insured) receive the corpus-built overtime.Overall, both retirement and term plans have their pros and cons. The final choice depends on your financial requirements. A term plan is more a protection plan than a policy, which can secure your future with regular income earnings.