Definition

The process of giving an employee the right to receive benefits from a pension plan, even if they leave the job before retirement.

Example

After five years of service, she received full vesting in her retirement plan.

Conversation

Have you heard about the new vesting policy at work?

Yeah, I read something about it — it sounds pretty beneficial.

I think it’s great since it helps secure our future even if we leave the job early.

Definitely! It’s nice to know we have something to fall back on.

Synonyms & Antonyms

Root Explanation

Vesting → It is formed from "vest" (from Latin "vestire", meaning to clothe or dress) and "-ing" (a suffix used to form nouns indicating an action or process). The word "vesting" refers to the process of granting or bestowing rights or benefits, often in a legal or financial context, akin to 'clothing' someone with those rights.

Memory Tip

Think of 'vesting' as the process of 'clothing' someone with rights or benefits, where 'vest' means to clothe and '-ing' indicates the action of doing so.

Visually Confused Words