One in three women financially worse off due to menopause

One in three women are financially worse off due to menopause and it's adversely impacting their retirement prospects, according to fresh data from MetLife.

MetLife surveyed 1058 women and non-binary individuals aged between 35 and 64 experiencing perimenopause or menopause, in what is one of the largest studies by a local insurer on those experiencing menopause.

MetLife found 84% of those experiencing menopause and are seeing it impact their career, employment and earnings capacity are behind on their retirement savings; 36% are significantly behind.

In 2023, modelling by the Australian Institute of Superannuation Trustees - now part of Super Members Council - estimated menopause is costing Australian women about $17 billion in lost earnings and retirement savings.

Further, 69% are lacking confidence about retirement, and 70% are expecting to delay their retirement as a result.

Across all survey respondents, 45% said their superannuation balances have been negatively impacted. This is driven by the fact many experiencing menopause are forced to make significant changes to manage their symptoms.

Some 32% of respondents said they had to alter their career in some form, including reduced working hours, changing their career path, or stepping down from leadership roles.

About 14% said they'd left the workforce early because of menopause; Macquarie Business School estimates this costs Australian companies about $10 billion a year in terms of recruitment and productivity.

Meantime, in managing their symptoms, about 30% have used up their total leave entitlements.

One of the factors that has hindered support for those experiencing menopause and has contributed to the stigma surrounding it is a lack of comprehensive data demonstrating how menopause and perimenopause impact women's economic outcomes.

In September, a Senate inquiry called on the government to commission a comprehensive study to assess the economic impacts of menopause "which clearly delineates the impact of symptoms of menopause on women's workforce participation, income, superannuation, and age of retirement."

It also suggested the government consider a range of solutions aimed at making it easier for those experiencing menopause to remain in the workforce for longer. This included a recommendation to investigate the efficacy of existing menopause and reproductive leave policies on offer in Australia, such as those offered by Aware Super, Cbus, and Future Group.

To ensure greater support, the government is being pushed to consider adding such entitlements to the National Employment Standards and modern awards, and to weigh introducing flexible working arrangements for women via the Fair Work Act.

Of those surveyed by MetLife, just 20% believe their employer is supporting them; 59% said their employer should do more to support women experiencing menopause, with 42% saying they receive little support at all and 30% not even knowing if there is support available at their workplace.

"Menopause is not just a women's issue," says MetLife Australia chief customer and marketing officer Lina Saliba.

"With women having to make tough career decisions, such as retiring early, menopause is impacting their financial situation now and into the future, meaning that families, workplaces, and society are all affected by menopause, due to the reduced economic and social contribution of women."

This article first appeared on Financial Standard

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