TLDR
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Despite its status as a taboo subject, menopause financially impacts both women and the companies they work for.
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But as women embrace the topic of menopause, they can learn to financially prepare for menopause and ensure their financial future remains bright.
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From workplace resources and support to tips for financial preparedness, here’s what women need to know about the financial impact of menopause.
Menopause may have significant financial impacts on women, encompassing direct medical costs and lost income and savings, as well as having broader economic consequences.
A report from the Menopause Foundation of Canada last year revealed that unmanaged menopause-related symptoms costs the Canadian economy approximately $3.5 billion per year. While employers estimate a loss in productivity of $237 million, women suffer an estimated $3.3 billion per year in lost wages.
Here are some of the ways women may be affected financially:
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Lost income: Severe menopause symptoms such as hot flashes, insomnia, and cognitive difficulties may lead to missed workdays.
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Long-term career effects: Some women report considering leaving their jobs or resigning due to severe symptoms, which can have long-term financial implications for their careers and earning potential.
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Pension and savings impact: Reduced working years and lower contributions may negatively impact retirement savings and pensions.
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Healthcare expenses: This includes fees not covered for treatments, doctor visits, and medications related to menopause symptoms. For example, women may incur costs for hormone replacement therapy (HRT), medications, or supplements.
For most women, menopause often begins between the ages of 45 and 55, which are usually thought of as “key earning years.” By proactively planning and taking steps, women can better manage the financial impacts of menopause and help maintain their financial well-being.
Plan for your financial future
Planning for your financial future is important at any stage of life; however, as life changes, knowing where you’re heading can bring peace of mind. If you don’t already have a financial plan, a good place to start would be with a holistic review of where you stand today — savings, debts, taxes, investments — a sound financial plan covers all aspects of your financial life.
Boost your retirement savings
While some women choose to retire early at this stage in life, you may need more time to be ready or interested. That’s why it’s essential to continue to invest regularly. Even adding small amounts to retirement accounts compound over time. Or you might consider contributing through an automatic savings plan, which can help you stay on track over the long term.
Budget for medical expenses
Provincial healthcare might only partially cover a few health expenses, leading to extra costs for you and your spouse. To budget ahead:
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Review your coverage to see if it includes menopause-related treatments, medications, and therapies.
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If your employer offers a Health Spending Account (HSA), consider contributing to it to cover health expenses tax-free.
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Consider keeping part of your investments in a form that can be quickly turned into cash if needed.
Build an emergency fund
Another option is to set up an emergency savings account with easy access to money so you can cover costs as they come up. Creating a “rainy day fund” to fall back on during tough times can be helpful, no matter when you start.
Read From Saving to Security: Strategies for Building a Rainy Day Fund to learn more about emergency funds.
Seek professional advice
Creating a financial plan for the future can be challenging, but getting expert help can make a big difference. Hearing about the budgeting, investment, and spending strategies that work (and don’t) for others can help you understand what might work for you. If you’re still unsure how to budget for potential menopause-related expenses., consider visiting a branch to talk with an RBC advisor.
Women can take proactive steps to ensure they are financially prepared for this phase of life. By boosting retirement savings, utilizing health benefits and planning for potential financial challenges, women can confidently navigate menopause and help maintain their financial security.
