Explore commonly used personal finance terms.
Accrued benefit represents the portion of a pension or retirement benefit accumulated by an employee based on their years of service and salary level. This amount is often guaranteed, even if employment ends before retirement age. Defined-benefit plans frequently include accrued benefits, which are calculated based on the pension formula. This amount grows as the employee continues working, ensuring financial security upon retirement and providing a predictable income stream aligned with the employee’s tenure.
