Healthcare costs risk is the risk that you will face significant out-of-pocket health care costs in retirement.

People in their retirement years are healthier and more active than retirees have ever been before. However, the innovations that improve and extend people's lives—such as medical advances and new prescription drugs—can be a major expense for retirees. Even with Medicare coverage, there is a possibility that you will face significant out-of-pocket healthcare costs that severely impact your financial situation.