The menopause penalty: How earnings and careers are affected over time

In a 2022 survey conducted by Leger Canada for the Menopause Foundation of Canada, about 46 per cent of women said they don't feel prepared for menopause, even though they know it's coming. (Getty Images)

A recent study suggests women experience a significant fall in earnings in the years following a menopause diagnosis, with more women stopping work and others working fewer hours.

Researchers from University College London, the University of Bergen, Stanford University, and the University of Delaware explored how menopause impacts women’s earnings, employment patterns, and demand for healthcare services.

They found that women experience a 4.3 per cent reduction in their earnings, on average, in the four years following a menopause diagnosis, with losses deepening to 10 per cent by the fourth year.

The study examined data from Sweden and Norway, focusing on women born between 1961 and 1968 who were diagnosed with menopause between the ages of 45 and 55.

According to the study, the loss in income is mainly driven by a decrease in the likelihood of women working full-time and a reduction in their overall hours worked. The study noted that many women either stop working altogether or shift to part-time roles, affecting their financial stability.

The researchers also found that menopause leads to an increase in doctor visits and “a permanent increase in drug utilization – driven by medications used to alleviate the physical and mental health symptoms of menopause.”

The impact on work and earnings is particularly pronounced among women without a university degree, who experience a larger financial hit compared to their more educated counterparts, according to the study.

The study also pointed out that workplace environment plays a role in how menopause affects women’s careers. Those employed in smaller, private-sector companies face a steeper decline in earnings compared to those working in larger, public-sector organizations, researchers found.

The study not only underscores the economic challenges women face during menopause but also suggests that public awareness and accessibility to menopause-related care can play a crucial role in improving outcomes.

“Our results suggest that policies aimed at supporting women who suffer more serious symptoms around the menopausal transition may have wide-ranging benefits,” researchers stated in the study.