What’s the True Cost of Menopause? Navigating the Financial Wellbeing Challenges of Perimenopause and Menopause in Australia

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Menopause is a natural phase of a woman's life, marking the end of her reproductive years. While it's a significant transition, it often comes with various challenges, both physical and emotional.

In Australia, as in many other countries, the significant financial implications that accompany this life transition are often overlooked. In this article, we'll delve into the real cost of menopause, explore what financial well-being is and the challenges associated with perimenopause and menopause in Australia and offer insights and strategies to navigate them effectively.

The Real Cost of Menopause: Understanding Financial Well-being and Menopause

Financial Wellbeing refers to the extent to which someone can meet all current commitments and needs comfortably and has the financial resilience to maintain this in the future (ANZ 2022) - and it is a real issue for women in Australia right now.

The current cost of living pressures, along with gender and health inequity issues, play a significant role in the financial well-being of women who are navigating the transition through menopause to healthy ageing.

Financial Wellbeing plays an important role in the overall health and wellbeing of individuals, families and community members. People in Australia are currently experiencing rising costs in almost every aspect of life - food, household basics energy, fuel, and housing. In September 2022, headline inflation in Australia reached the highest level in more than two decades at 7.3% and financial stress doubled in the past two years (ANZ 2022).

One-third of Australians state living costs as their biggest cause of stress (NAB, 2022).

One-third of Australians are unable to raise $4000 for an unexpected but urgent expense, and another third said they would have to use credit (NAB, 2022).

What is the Interplay of Financial Wellbeing and Menopause?

The Impact on Women’s Careers

The average age of menopause is 51, with many women experiencing symptoms for 5-10 years, coinciding with pivotal points in many women's careers. This timing often results in unique financial challenges including those listed below.

1. Career interruptions: Symptoms such as hot flashes, fatigue, sleep disturbances and mood swings can disrupt daily life and work routines, leading to missed days, decreased productivity, and even early retirement. According to research, this loss of work productivity is potentially costing Australian businesses millions each year.

2. Reduced earning potential: Women may find it challenging to maintain their previous levels of productivity and focus, which can hinder promotions and wage growth. The need for time off due to severe symptoms or medical appointments can be a hidden cost for employers.

3. Job discrimination: Sadly, some women encounter bias and discrimination at work due to age-related stereotypes associated with perimenopause and menopause. This results in 1 in 8 women resigning during menopause and another 2 in 8 wanting to. Research shows that 45% of women consider retiring or taking time off work when their symptoms are severe. Of these 28% did retire with 42% unable to retire or take time off work due to financial stress (Circle In, 2021).

Financial Planning and Healthcare

The increased focus on health during these life stages can also have financial consequences.

1. Healthcare costs: Regular visits to healthcare providers, hormone therapy, and medications to manage symptoms can add up, putting a strain on personal finances, especially for those without private health insurance.

2. Reduced income: For those who need to take time off work or reduce their hours due to severe symptoms, their income may decrease.

3. Insurance premiums: Women might experience changes in their insurance premiums, particularly for health and life insurance policies. As women age, healthcare costs tend to rise, necessitating more substantial retirement savings.

Menopause is costing Australian Women $17 billion in lost earnings and retirement savings. In Australia, close to 27% of women retire before the age of 55 and have 40% less superannuation than the average man. Australian Institute of Superannuation Trustees (AIST 2022).

4. Retirement age: Some women may choose to retire earlier than planned due to the physical and emotional toll of menopause, affecting their retirement savings.

5. Spousal support: Divorce rates among older couples are rising (ABS, 2021), potentially leading to a reduced financial safety net if women haven't been actively managing their finances.

The Societal Impact

1. Mental Health & Wellbeing: Menopause can take a toll on mental health and wellbeing, leading to conditions like anxiety and depression, impacting sleep and a loss of self-worth causing a general decline in productivity. These conditions not only affect the individual but also place additional stress on the workplace and relationships.

2. Relationship Strain: The emotional and physical changes associated with menopause can strain relationships, leading to an increased need for counselling or therapy costs for couples and families. Unresolved relationship issues can lead to separation and divorce placing additional financial strain and strain on all involved.

3. Education and Awareness: Lack of education and awareness about menopause can perpetuate the stigma surrounding it. This results in delayed diagnosis and treatment, increasing long-term healthcare costs.

The Personal Impact

1. Quality of Life: The physical and emotional symptoms of menopause can significantly impact a woman's quality of life. Many women turn to complementary therapies and lifestyle changes, which may come with their own financial burdens.

2. Hormone Replacement Therapy (HRT): Some women opt for hormone replacement therapy to manage menopausal symptoms. While effective, HRT comes with its own costs and potential health risks.

3. Ongoing Healthcare Needs: Menopause is associated with an increased risk of certain health conditions, such as osteoporosis and heart disease. Managing these conditions requires ongoing medical attention and expenses.

Prioritise self-care practices like exercise, nutrition, and stress management to reduce the severity of menopausal symptoms and maintain productivity.

Financial Strategies for Perimenopause and Menopause

Despite the challenges, women can take proactive steps to protect their financial wellbeing during perimenopause and menopause:

1. Build an emergency fund: Creating a financial cushion can help cover unexpected medical bills or income gaps due to missed work.

2. Prioritise health insurance: Invest in comprehensive health insurance to mitigate the financial burden of healthcare expenses.

3. Career planning: Discuss potential modifications with employers to maintain job performance during symptom flare-ups, such as flexible work hours or hybrid work options.

4. Long-term financial planning: Consult with a financial advisor to adjust retirement savings strategies and ensure they align with changing circumstances. Understand what your Superannuation offers in terms of income protection, trauma and life insurance (it’s always good to be prepared for a rainy day!)

5. Embrace self-care: Prioritise self-care practices like exercise, nutrition, and stress management to reduce the severity of menopausal symptoms and maintain productivity.

Summary

The real cost of menopause in Australia extends far beyond the physical and emotional toll it takes on women. It encompasses career and economic implications, societal impacts, and personal challenges.

By acknowledging and preparing for these challenges, women in Australia can navigate menopause with greater financial wellbeing and confidence.

In order to foster more supportive and inclusive environments for menopausal women, we need to focus on increased awareness, better workplace policies, and improved healthcare access which can all positively contribute to easing the burden of menopause on Australian society as a whole.

References/Citations

2021 ANZ Financial Wellbeing Survey - Australia. Available at: https://www.anz.com.au/content/dam/anzcomau/documents/pdf/aboutus/esg/financial-wellbeing/anz-au-adult-financial-wellbeing-survey-2021.pdf

NAB australian wellbeing survey Q3 2022 (2023) Business Research and Insights. Available at: https://business.nab.com.au/nab-australian-wellbeing-survey-q3-2022-56732/

Driving the change: Menopause and the workplace: Research (2021) Circle In. Available at: https://circlein.com/research-and-guides/menopause-at-work/