How GLP-1 Drugs Could Revolutionize Retirement

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. But these medications 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.

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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, subsequently and profoundly, change how we plan for retirement: “I think 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.

Here’s where GLP-1 drugs could shift the equation. “If GLP-1 medications can effectively reduce the incidence and severity of chronic diseases, retirees may indeed experience lower health care costs,” says 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.

In fact, new findings link GLP-1 use to reduced dementia symptoms. It’s a breakthrough that could dramatically ease financial and emotional burdens, with dementia care costs averaging more than $28,000 annually, much of which is assumed by family caregivers.

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,” adds Dr. Stanford.

In short, a retirement defined by more living than just surviving.

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. The future of retirement may be more “go” than “slow.” By mitigating the long-term effects of chronic diseases, 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 says.

This shift aligns with changing attitudes. Surveys show that younger generations increasingly desire a more “active” retirement. Currently, the top activity for older adults is watching TV. So, imagine a future where retirees are too busy hiking trails, exploring cities or picking up new hobbies to binge-watch Netflix.

However, healthier bodies could mean longer Go-Go years but also more spending on travel, leisure, and experiences.

Blanchett warns of financial implications: “While I don’t think most Americans will live to age 100, longer lifespans are increasingly possible. This complicates retirement planning, forcing each person to have to deal with a variety of idiosyncratic risks, perhaps where the most notable is longevity risk.”

Yes, a more active retirement could mean more spending, 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

Fewer than one in four retirees feel confident they can maintain a comfortable lifestyle throughout retirement, according to the Transamerica Center for Retirement Studies. Many regret not saving more or starting sooner – two-thirds wish they had saved more consistently, and half wish they had started investing earlier.

While GLP-1 drugs can’t rewind time (not that we know of, yet), they could help people stay healthier and work longer, providing a crucial opportunity to catch up on savings. Health problems are the leading cause of early retirement. More than half of respondents in an EBRI survey retired earlier than planned, citing health problems or disabilities as the top reason.

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

The financial upside of working longer is clear. “Delayed retirement is one of the most powerful things people can do to improve their retirement situation,” says Blanchett. “It gives you more time to save for retirement, more time for assets to grow, the ability to delay claiming Social Security benefits and one less year of retirement spending to fund.”

For instance, consider catch-up contributions. Starting at age 50, workers can contribute extra amounts to retirement plans, and recent legislation now allows even larger “super” catch-up contributions for those aged 60 to 63.

Even short delays can make a big difference. Research shows that postponing retirement by just three to six months can have the same financial benefit as saving an additional percentage point of earnings annually for 30 years.

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

Retire on, retire off

Without the looming burden of poor health, the path from career to retirement could become far less linear.

The traditional “work for 30 years, then retire” model was already evolving before GLP-1 drugs entered the conversation. A growing trend among younger workers is taking extended sabbaticals — short career breaks to recharge or explore new passions before returning to work.

Gen Z, in particular, is embracing this shift, favoring shorter, more frequent career pauses over one permanent retirement. According to HR platform Gusto, more workers are embracing these micro-retirements, reflecting a shift in attitudes toward productivity and well-being.

With healthier lifespans on the horizon, these career pauses may become even more common. “Improved health could lead to a trend where individuals who had retired due to health issues might choose to return to work,” says Dr. Stanford.

Entrepreneurship research further illustrates how retirement could evolve. An MIT study analyzing millions of U.S. companies found that the highest success rates in entrepreneurship come from founders in middle age and beyond, with the average age of a successful startup rounder being Is 45 years old. This underscores that career pivots and reinventions are not only possible but often highly rewarding later in life.

In this redefined future, retirement becomes less of a final chapter and more of an ongoing, flexible journey — a chance to step in and out of work, fueled by health and choice rather than necessity.

Too good to be true? Why you may not want to adjust your retirement plan just yet

While GLP-1 drugs offer promising benefits, they come with notable drawbacks. One major issue: 50-75% of people stop using them within a year. Cost is the leading factor.

With prices in the hundreds of dollars monthly, “they are expensive, particularly in the US, compared to other countries with national insurance, such as Canada and the UK.” Dr. 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.

The effects may even extend beyond the body. “Significant weight loss can alter social dynamics and relationships,” says Dr. Stanford. “Some individuals may experience changes in self-esteem and social interactions. Open communication and support systems are important to help navigate these changes.”

Then there’s the question of sustainability. What happens when people stop taking the drugs? Many revert to old habits, losing their progress.

It’s a reminder that while GLP-1s may help, they aren’t a silver bullet. Of course, there are proven, often cost-free ways to achieve many of the same benefits: regular exercise, a balanced diet, sufficient sleep and strong social connections. Though less flashy than a prescription, these habits are powerful drivers of long-term health and well-being. Recent research, however, indicates that these measures may not be enough to control obesity in some cases and that obesity is not driven by a lack of willpower but by a disease process.

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.

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