VIP, or Voluntary Investment Program, is one of the vehicles one can use for saving money for retirement. The money set aside from a paycheck is tax deffered, meaning that at some point in the future taxes will have to be paid.
The age when you have to start withdrawing from the account and start paying taxes is 70 1/2. This is regardless whether you need the money or not. You have to figure out what is the minimum amount you have to withdraw from your differed account on a yearly basis.