What is the primary benefit of being 'vested' in your retirement plan?

Being 'vested' in your retirement plan means that you have earned the right to the money that your employer has contributed to your retirement account on your behalf. Once you are fully vested, you own that portion of the funds in your account without any risk of losing them, even if you leave the company. This is crucial for employees as it provides a sense of security regarding their retirement savings and ensures that they receive the full benefits of the employer's contributions when they retire or withdraw funds.

In contrast, higher contributions from the employer, better investment options, and earlier access to funds are benefits that may accompany certain retirement plans but are not directly tied to the concept of vesting. Vesting specifically pertains to ownership of the funds contributed by the employer after a certain period of employment, making complete ownership of the account balance the primary benefit.