Study: Women Lose Up to 10% of Earnings After Menopause
The motherhood penalty on women's earnings is well-documented, but what happens at the other end of the reproductive spectrum? It turns out that during menopause, women take another financial hit.
A new study sheds light on an often-overlooked consequence of menopause — its impact on women’s financial stability. International researchers have found that women experience a significant decline in earnings after being diagnosed with menopause, with income losses reaching up to 10% within four years.
“All women go through the menopause, but each woman’s experience is unique," says Lead author Professor Gabriella Conti (UCL Economics). "We looked at women with a medical menopause diagnosis, so these women may have experienced more severe symptoms than the general population. Our study shows how the negative impacts of the menopause penalty vary greatly between women."
The study by University College London, the University of Bergen, Stanford University and the University of Delaware examined the connection between menopause, employment patterns and healthcare use.
By analyzing medical records from Sweden and Norway, researchers focused on women diagnosed between the ages of 45 and 55 who were born between 1961 and 1968.
The Financial Toll of Menopause
According to the findings, women’s earnings drop by an average of 4.3% in the first four years after a menopause diagnosis, increasing to a 10% reduction by year four. The primary cause? A shift in working hours. Many women move from full-time to part-time employment, while others leave the workforce entirely, leading to long-term financial insecurity.
The study also found that the financial impact varies based on education level. Women without a university degree experience greater income losses than those with higher education. Additionally, workplace size and sector play a role — women employed by smaller, private-sector businesses face a steeper decline in earnings compared to those working for larger, public-sector organizations.
"Graduate women tend on average to be better informed of menopause symptoms and more aware of their treatment options," says Professor Conti. "This may mean they are better equipped to adapt and continue working throughout their menopause.
"Our findings suggest that better information and improved access to menopause-related care are crucial to eliminating the menopause penalty and ensuring that workplaces can better support women during this transition."
Healthcare Costs and Workplace Support
Menopause’s financial strain extends beyond lost wages. The study found an increase in doctor visits and long-term medication use, particularly for treatments addressing menopause-related physical and mental health symptoms. These additional healthcare costs add to the economic burden faced by women navigating this stage of life.
And the likelihood of claiming disability insurance benefits increased by 4.8% in the four years following a menopause diagnosis, suggesting that menopause symptoms significantly impact women’s work patterns, the team said.
Better workplace accommodations and greater awareness are critical and employers need to offer support to women navigating menopause.
"We were surprised to find so few studies looking at the economic effects of menopause, something that more than half of the world’s adults will experience," says co-author Professor Rita Ginja of the University of Bergen. "We hope that our work can help shed more light on how menopause affects the careers and economic well-being of women.”