What is compound growth, and why does time matter?

Compounding happens when the growth your money earns is reinvested and starts earning growth of its own. Over time, this snowball effect can do more work than your contributions.

£250 a month for 20 years is £60,000 paid in. At a 6% average annual return, it could grow to around £115,500. More than half of the growth comes in the final decade.

Every year you wait is a year of compounding you don't get back. Starting small today often beats starting big later.