The hidden costs of menopause that can impact retirement planning

Menopause is a significant event in the lives of virtually every woman. While the physical and mood side effects are well-known, the financial effects are less obvious – yet can be far more serious.

The word ‘menopause’ is synonymous with ‘hormones’ and ‘hot flushes’.

But like other chronic health conditions, menopause can be financially expensive to manage – especially where symptoms are severe, long-lasting or resistant to treatment.

While every woman’s experience is different, there are some common elements to be aware of and, as much as possible, plan ahead for.

Extra medical costs

Few doctors bulk bill anymore, meaning every consultation leaves you out of pocket.

Assorted medical tests, to rule out serious illnesses masking as menopause, may only be covered by Medicare in part, if at all.

Medications and symptom-relief treatments, both prescription and over-the-counter, are often not entitled to any healthcare discount. Indeed, ABC News recently reported that one hormone therapy drug alone can cost up to $60 per month and is not subsidised under the Pharmaceutical Benefits Scheme (PBS).

It quickly adds up.

Symptoms have side effects

The government’s Healthdirect website lists some 20 symptoms of menopause. Many are physical, while others affect mood and emotional health – which in turn impact your ability to think clearly, make good decisions, and remember important things.

For instance, brain fog can inhibit your decision-making, such as when and how you will retire.

Memory problems can lead you to forget to make payments (such as credit card repayments and household bills) on time, attracting interest charges.

An inability to concentrate diminishes your ability to absorb crucial information – from your financial adviser, accountant, estate planning lawyer, doctor or other professionals.

Sleep interruptions from night sweats and general fatigue further reduce cognitive functioning.

Employment

A 2022 survey of more than 4000 women by UK charity Fawcett Society found that almost half (44 per cent) had their ability to work impacted by menopause symptoms. A staggering one in 10 had to stop work altogether, while 14 per cent reduced their working hours.

Naturally, this generates an income hit and reduces the amount of money going into superannuation.

A woman’s ability to re-enter the workforce once their symptoms stabilise may also be compromised, given there are generally fewer employment opportunities for mature age workers.

Stress on relationships

Between 1996 and 2016, overall divorce rates in Australia declined – yet increased for women aged 45 and over, according to the Australian Institute of Family Studies. This directly coincides with menopause, which Healthdirect states typically occurs between the ages of 45 and 60 (51 years is the average).

Menopausal women often behave and react differently from their usual selves, under hormonal changes and unpleasant symptoms. They can become a different person, without even consciously realising it. Frustration can build within their relationship until it reaches breaking point.

As well as the direct costs of a break-up, living costs balloon from changed living arrangements and the loss of economies of scale (the cost of living is higher for singles than for couples).

The gender pay gap

All these factors come on top of the fact that women are financially disadvantaged by the gender pay gap and gender superannuation gap.

Currently, Australian women earn just 78 cents for every dollar men earn – a difference of $26,393 per year, according to the Workplace Gender Equality Agency.

That means less employer contributions into women’s super, pushing them even further behind financially.

So, what can you do?

While there are pushes for better support for menopause collectively, you do have some things within your control.

Seek assistance from your employer instead of quitting work altogether. That may include flexibility in working hours or a temporary lightening of your workload.

Bank any long service leave to use in case you need time off to deal with your symptoms. And don’t use it before exhausting your sick leave first.

Revisit your income protection insurance, if you have it.

Leverage super contribution rules to catch up on lost payments or have your spouse contribute to your super while enjoying tax benefits.

Most of all, be kind to yourself. Menopause is an uncomfortable part of life for women, but it is temporary. Get support, manage your wellbeing, and do what you can to minimise the financial impacts – with help from your financial adviser as a qualified external source of advice and encouragement. Your future self will thank you.

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Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.