How GLP-1 drugs could revolutionize retirement

Photo by Haberdoedas | Unsplash.com

By Jacob Schroeder
Posted on April 03, 2025

You know something is a big deal when Big Food gets nervous.

The culprit? Popular weight-loss drugs like Ozempic, which mimic the hormone glucagon-like peptide-1 (GLP-1) to curb hunger, aren’t just suppressing appetites. They’re reshaping eating habits, steering people away from sweet and salty cravings.

A Cornell study found households with a GLP-1 user cut grocery spending by about 6%, with the largest drop in calorie-dense, processed items, including an 11% decline in savory snacks. As The New York Times reports, companies like Pepsi are scrambling to reformulate products, such as adding protein and whole grains to match shifting consumer tastes.

The rise in GLP-1 drugs is undeniable. Morgan Stanley projects that by 2035, 24 million Americans, or 7% of the population, will be using these medications.

But that estimate may be too low. GLP-1 medications are proving remarkably effective beyond weight loss, showing promise in treating substance abuse and even psychological disorders. These early signals suggest the impact could extend far beyond a healthier bag of chips. They could spark a broader health revolution.

David Blanchett, head of retirement research at PGIM, believes these medications could change how we plan for retirement: “We’re going to have more of these advances in the future, that result in increasing lifespans in retirement. It’s not really possible to know what these are, but the implications for retirement are somewhat staggering.”

With healthier adults living longer, the future of retirement could be rewritten entirely.

So, what could that future look like?

GLP-1 drugs and fewer doctor visits — and bills

The cost of health care looms large for retirees. Fidelity estimates that the average retiree today will spend $165,000 on medical expenses. Rising costs are driven by longer lifespans and chronic conditions such as heart disease, diabetes and arthritis.

“If GLP-1 medications can effectively reduce the incidence and severity of chronic diseases, retirees may indeed experience lower health care costs,” said Dr. Fatima Cody Stanford, obesity medicine physician and associate professor of Medicine and Pediatrics at Harvard Medical School.

What’s more, research indicates GLP-1 drugs may help prevent a range of serious conditions, lowering the risk of stroke, kidney disease and even neurodegenerative diseases we’ve thought practically incurable, like Parkinson’s and Alzheimer’s.

The potential benefits extend beyond health care savings. “This could allow more disposable income to be spent on travel, hobbies and other activities, enhancing quality of life,” Stanford added.

More retirees on the go

Age naturally slows us down, with slower metabolism, muscle loss and inactivity as common culprits. That’s why retirement is often described in three stages: the Go-Go years, the Slow-Go years and the No-Go years. It’s during the Go-Go years — those early, active retirement days — that people travel and pursue long-awaited adventures.

But GLP-1 drugs could help rewrite that narrative — more “go” than “slow.” These medications could help retirees remain active well into their later years.

According to a PwC study, over half of users said they made healthier food choices, and about a third reported less binge eating and drinking. Most kept or increased their exercise routines, signaling a stronger commitment to a healthier lifestyle.

“If retirees can be healthier for longer, they may want to do more things, for longer, than we’re seeing today from retirees,” Blanchett said.

Yes, a more active retirement could mean more spending on travel, leisure and experiences, but here’s the kicker: GLP-1 drugs could reduce one of the biggest obstacles to financial security — the health problems that force people into early retirement.

Longer careers, larger savings

More than half of respondents in an EBRI survey retired earlier than planned, citing health problems or disabilities as the top reason.

GLP-1 drugs could help people stay healthier and work longer, providing a crucial opportunity to catch up on savings.

“With better health management, individuals may be able to extend their working years, contributing to increased workforce participation among older adults,” Stanford said.

The concept of a fixed retirement age may fade altogether. If people have healthier, longer lives, retirement could become more of a flexible transition than a hard stop.

The bottom line

While GLP-1 drugs offer promising benefits, they come with notable drawbacks. In fact, 50-75% of people stop using them within a year. Cost is the leading factor (hundreds of dollars per month).

“They are expensive, particularly in the U.S., compared to other countries with national insurance, such as Canada and the UK,” Stanford notes.

Side effects also cause concern, with users reporting nausea, gastrointestinal issues and sleep disturbances. Rare cases of eye complications, including conditions linked to blindness, have surfaced.

Still, the buzz around GLP-1 drugs continues to build, fueled by study after study showcasing their potential. Whether they spark a health — and retirement — revolution or fade like a fleeting trend, one thing is certain: They already have more staying power than Crystal Clear Pepsi.