There’s an old saying — when it rains, it pours.
Problems in life tend to compound. The more we’re dealing with at once, the more burdensome each additional issue can be.
From a financial perspective, debt often racks up interest, comes with fees, and grows over time.
Consider how two of the biggest threats to a retiree’s finances — inflation and medical costs — could compound.
A person trying to manage medical costs may have to make more trips to get the process lined out. This could hurt them financially as travel expenses cost more now. The reverse could also be true. Inflation could make some people have to live hard, which could then in turn lead to more medical issues.