Invest now, earn later
The benefits of compound interest in early savers - read more
"Let's say you start saving €3,000 a year into a investment fund at the age of 21.
You save for 10 years. Although you stop saving after 10 years, you leave your savings in the fund until you reach the age of 70.
By the age of 70, those 10 years' savings would be worth €664,129 – as long as the annual investment return on your fund is seven per cent, according to Ian Mitchell, a pensions expert and managing partner of the Belfast consultants, Eighty20Focus."
"Start early and 10 years' savings will be a nest egg"
Compound interest – which is essentially interest earned on interest over time – is the reason.