Menopause’s pension price tag

I’ve been writing about the ‘hidden tax’ of the menopause on your pension and finances for three years now. And each time I dive back into this topic, there’s always something new to write about.

Those nagging gripes I’ve moaned about in the past (sore hip, brain fog, weight gain to name a few) have started to ease… thank goodness. That’s partly down to hormone replacement therapy (HRT). But it’s also down to me taking back control of what I can - namely eating better (more mindfully) and moving more. So, peri-menopausal life feels a lot brighter these days.

But I’m aware that while I’m doing what I can to manage the menopause - and not let it manage me - other women aren’t in the same boat. Some are just at the beginning of their journey and may not even realise they’re already in the grips of it.

With a growing list of more than 34 recognised symptoms¹ (none of them a walk in the park), menopause often has a stealth-like onset that creeps up unnoticed. And it has the power to chip away at your wellbeing - physically, mentally and financially.

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The menopause penalty - time out of work all adds up

Fidelity’s research² shows that the impact of menopause on work isn’t just felt day to day - it can shape women’s long-term finances too. More than one in eight women in their 40s and 50s say their symptoms have directly affected their earnings, often because they’ve had to take extended time off.

Those breaks, while sometimes unavoidable, come at a cost.

To see what this could look like in real life, we crunched some numbers. Fidelity’s modelling shows that a woman who takes one year out of the workforce at age 51 (the average age symptoms usually start) could end up with almost £20,000 less in her pension pot by retirement. Two years out could mean losing nearly £37,000. And for those who need longer breaks, the numbers are stark, as five years away from work could leave a gap of more than £86,000³.

And it’s not easy to catch up afterwards. Only about one in ten women manage to increase their pension savings once they’re back at work, compared with more than a quarter of men in the same position. That’s why even small changes early on can make a big difference. Our calculations show that raising contributions by just 1% of your salary, if started in your 20s, could help soften the blow of career breaks later in life.

The result? Women are working longer to save the same…

What’s more, our research shows that women retire with, on average, £96,600 less in pension savings than men. So, to reach the same retirement savings, women would need to work an extra three years and four months.

This gap exists because women often start on lower pay, take more time out for caring, and save less into pensions. When you add menopause-related breaks into the mix, the gap gets even wider.

Fidelity found that even a single year out of work for caring - whether for children, parents, or menopause symptoms - could mean having to work into your 70s to catch up.

There are steps that can help. On an individual level, Fidelity’s research shows that raising contributions from 8% to 10% of salary can allow women to retire at the same age as men with similar savings.

But this isn’t only down to women to fix. Employers and policymakers also need to act - by making flexible working the norm, tackling pay inequality, and recognising the financial impact of health challenges like menopause.

Does AI hold the secret to closing the menopause-finance gap?

‘New me’ exercises and walks a lot more - sometimes with company, sometimes alone. On solo walks I often listen to podcasts, and many have explored how artificial intelligence (AI) could change the story of menopause and, in turn, our finances.

By helping doctors spot symptoms earlier, tailoring treatment to each woman, and speeding up the discovery of new non-hormonal therapies, AI could dramatically cut the time women spend out of the workforce. Some even suggest evolving medicine might delay menopause altogether. Less disruption at work means steadier earnings and more consistent pension contributions - two of the biggest factors in narrowing the gender retirement gap.

AI also has the potential to reduce hidden costs by predicting health risks linked to menopause, like osteoporosis or heart disease, before they become expensive problems. And as workplace-focused tools spread - educating employers and shaping fairer policies - the stigma around menopause may finally start to ease.

These advances won’t erase the financial impact of menopause overnight. But if progress continues, they could help women hold on to their careers, their confidence, and their long-term savings.

Practical steps to protect your pocket

While there’s no quick fix for the challenges menopause brings, there are practical steps you can take to ease the financial impact. Here are some ideas.

1. Review your pension contributions. Even a small top-up now has the power to make a difference over the years. If you’ve got a workplace pension, ask your team if you can add more into your pension (some companies match additional contributions above auto-enrolment) or if there’s salary sacrifice for pension savings.

• See the difference the power of small amounts can make

2. Plan for career breaks. If you need to adjust your hours due to menopause symptoms, treat it like any major life event - talk to your manager about phased returns, flexible working or temporary role adjustments. Don’t forget to document any major changes for your pension provider.

3. Save what you can outside of work. Save little and often - if you can. One of the most tax-efficient ways of doing this is through a Stocks and Shares ISA, as any gains you make are free from income tax and capital gains tax.

• Read more about being tax efficient
• Open a Stocks and Shares ISA

4. Stay informed. I listen, watch and keep tabs on all things menopause. It helps me to make sense of what’s going on. I’ve set up google alerts, so I can tap into emerging topics of interest. And I follow Dr Naomi Potter and Menopausal Not Mad on Instagram. I also follow nudispray, a company that’s set up by an old school friend of mine, who has created a brilliant spray that effortlessly gets rid of the stubborn sticky glue left by HRT patches (IYKYK) and interviews loads of fascinating menopause experts. I recommend looking them up. Knowledge is power!

5. Talk openly. Share what you’re going through with trusted friends, partners or support groups. When we normalise menopause conversations, we help shake off the shame and push for policy change.

Try not to sweat it - and I’m not talking hot flushes

The menopause penalty is real - but it doesn’t have to define us, or our future finances. Smarter choices, more open conversations, and new tools like AI could help women protect their health, their confidence, and their long-term savings.

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• Read: 5 good reasons to take your tax-free cash - and 5 bad ones
• Read: How to create a retirement salary
• Read: How could the inheritance tax seven-year rule change?

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Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.