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Vesting means ownership of an asset, like retirement contributions or stock options, becomes yours after a certain period or condition is met.
In Depth
Vesting means that you have earned the right to keep a benefit, even if you leave your job. For example, if your employer contributes to your 401(k), those contributions might not be fully yours until you've worked there for a certain period. Once vested, the money belongs to you permanently. This process encourages employees to stay with a company longer.
Example
After working at the company for five years, Sarah's 401(k) employer contributions became fully vested, meaning she could take all that money with her if she left.