what does a pension being vested in 10 years mean

Question

had a job interview the other day where they mentioned that i would get a pension that was vested in 10 years if i was selected for the job

wtf does a pension being vested mean? and whats the different between a pension and something like a 401k that makes people like pensions more?

In: Economics

Answer 1

so like when they say your pension is vested in 10 years it means you gotta work there for 10 years before you get the money you earned. a 401k is more flexible but with pensions you get that sweet steady income once you’re old. plus it’s all about that guaranteed money ya know? sounds good to me