Menopause and the Retirement Wealth Gap – what’s the connection?

Despite the fact that most Americans find it difficult to save for retirement, women face even greater obstacles to saving, largely because of the ongoing gender wage gap that eventually results in a gap in retirement wealth.

In retirement, older women receive approximately 80 percent of the retirement income of older men, a disparity that mirrors the gender pay gap.

But, how does menopause further impact the retirement wealth gap for women?

Leaving the workplace early

It has been shown that women’s retirement savings and pensions are negatively affected by factors such as leaving the workplace early and working part-time, which often coincide with the time in a woman’s life when she goes through menopause. For some women, this is a difficult time, negatively impacting their careers.

Kathy Abernethy, Peppy’s Chief Nursing Officer describes, “Of course, more than half the population will go through menopause and that represents a huge chunk of the workforce. The average age of menopause is around 51, but we must remember that some will go through it much younger than that and those women will experience the impact for much longer.”

The working life of women has changed dramatically in just one single generation. Menopausal women now make up 20% of the US workforce and are the fastest-growing demographic. Many of these women will be facing work problems at the same time as they’re experiencing perimenopause, which can last for years in some cases.

As a result of the natural hormonal change associated with menopause, women at work may experience hot flashes, sweats, fatigue, memory loss, and brain fog, among many other symptoms.

“Menopause can create a real hump in the road for working women. They may love their job and be very competent at it. But, sometimes it needs to be done differently while they are menopausal – which means discussing it with their manager,” says Kathy.

“We know that one in four women consider leaving their job just because of menopause, partly because they don’t feel they can ask for the adjustments they might need to get on with their work. It can be a sticky issue to discuss with your manager, colleagues, and peers. And this is why some women are choosing to opt out of work or to go for a lesser job, which will have a tremendous impact on their pension later on.”

Affect on promotion

Those who do remain in their current jobs may find that menopause has an adverse effect on their ambitions. As a result, they may be less likely to apply for promotions, pursue training, or take on new roles.

Max Landry, co-founder, and co-CEO of Peppy explains, “There’s this large cohort who effectively won’t leave, but will not go for the promotion. They will not push themselves in the way that perhaps their male peers do. This will obviously impact the retirement wealth gap, which then impacts the pension deficit between men and women.”

The cost of women quitting

Menopause affects not only the person experiencing it but also their colleagues and the productivity of the company where they work. So, how can organizations support their staff as they transition through this natural process?

Kathy illustrates, “HR teams have a big social responsibility, as they look after employee wellbeing, which includes menopause. Furthermore, from an investment and financial perspective, companies are losing highly experienced women, often in senior positions, simply because they do not feel supported or understood at this critical time.”

“These women quitting the workplace represent a real financial loss to their employers. The cost of replacing them, to train somebody else to take their place, will be very high. In addition to addressing menopause on an individual level, employers should also address it on a corporate level.”

Conclusion

Kathy concludes, “When I talk to people about menopause, it’s never just about their hormones. Menopause happens at a time in life when we are hit by a lot of other things at once. In order to help them through the menopause transition, employers can put in place individualized support, as we offer at Peppy. We’re not just addressing the symptoms of menopause; we’re also pointing them toward other resources and people who can help.”