How GLP-1 medication costs could quietly eat into your retirement savings

The growing popularity of GLP-1 drugs may also be creating an unexpected financial strain, according to a survey.

Half of GLP-1 users said they worry they may have to choose between paying for the medication and saving enough for retirement, according to Nationwide Retirement Institute's Healthcare Costs Survey of 1,933 adults conducted last summer. Nearly one in four users, or 24%, said keeping access to the drugs matters more to them than boosting retirement savings, the research arm of Nationwide Insurance found.

A separate Virginia Commonwealth University study found that median out-of-pocket spending for a GLP-1 user tops $1,500 a year, while nearly one in five spend more than 10% of household income on the drugs. Uninsured and lower-income people faced the highest costs.

"GLP-1s are forcing financial tradeoffs," said Kristi Rodriguez, leader of the Nationwide Retirement Institute. "It's forcing a new retirement conversation."

How users are responding

More than half, or 54%, of current GLP-1 users said they have already changed their financial habits because of the high cost. About 17% have taken on debt such as credit cards or loans; 14% have withdrawn money from savings, investments or retirement accounts; 14% have cut retirement contributions or investing; and 10% have delayed or skipped other medical care, the survey said.

Some of those choices are tied to the health optimism the drugs create, the institute said. Nearly 9 in 10 current users, or 88%, said GLP-1 medication makes them feel more hopeful about their long-term health, and 64% said they may retire later because the drugs make them feel healthier.

Nearly 6 in 10 respondents, or 59%, said the expected health benefits reduce the pressure they feel to raise retirement savings, while 57% said those benefits make them less worried about needing extra health or long-term care insurance later on.

What financial experts say users should do

"Living longer and healthier is good, but it also means you need more money," Rodriguez said. "A good percentage may work beyond retirement age but the flip side is longevity. Living longer also means your money may need to last longer."

People who stay on GLP-1 medication over time, and many may do so for the rest of their lives, will likely need more money to keep paying for it. Nearly 60% of current users said they worry about being able to afford the medication in retirement, the study found.

"People think GLP-1 is important, and they're spending money now," said Patrick Simasko, an elder law attorney and financial adviser at Simasko Law. "Then, they don't have a retirement account and have to rely on some other means for retirement, like Social Security or their parents' money."

Simasko said that is not a strong plan. Depending on parents' money is risky because "they may live too long, the brother can sneak in and put it all in his name, or it can get scammed," he said. He also noted that Social Security benefits could be reduced in 2032 unless Congress acts soon.

Rodriguez said everyone, especially GLP-1 users, should meet with a financial adviser and build a plan that accounts for a potentially longer retirement and the cost of continuing the medication. She also suggested using online tools such as Nationwide's health care costs in retirement calculator to estimate how non-Medicare expenses could affect retirement savings.

Simasko advised all people, including GLP-1 users, to fully fund retirement accounts every year. "If you have matching program for work, absolutely, as much as you can contribute to protect yourself first. Have it taken out automatically from your pay check and don't look back. Then go for a walk, put on your sneakers instead of using a GLP-1. Or use whatever money's left after funding your retirement. Budget that for GLP-1," he said.