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Life is complicated for most people aged 45 - 60, not in the least because of the impact of family responsibilities, work pressures, gender discrimination and significant life events including menopause. This perfect storm can affect a woman’s financial stability - from her capacity to earn, save and to retire well. This article summarises some key challenges women face, and outlines three strategies to prepare for financial stability in midlife.

Midlife - “the Perfect Storm”

Life is full of stressors, but our 40s are definitely a period of reckoning where we are facing multiple stressors from all angles, from family and work pressures to personal health issues - all of which can affect our financial situation.

We face changing family relationships including our children leaving home, separation from a partner, re-partnering, and supporting ageing parents.

We also face decisions about stepping into leadership roles, perhaps changing jobs, retiring, going back to study or changing careers in an attempt to find more meaningful work.

These challenges are compounded by issues such as gender discrimination and the impact of menopause on work and financial stability.

Yet more women than ever are in the workforce right now. Women clearly want to work, with twice as many women aged 55 - 64 are in the workforce compared with men.

Of all the people we speak with and in many of the studies of women in mid-life, there is an overwhelming sense that ‘women just get on with it’. This underlines the considerable and often unacknowledged resilience of women in the workforce.

Resilience is a key part of the equation. It’s not so much the type and number of stressors that matter, but how well-resourced we are to cope with these stressors, seek help for them, and bounce back from them.

So, what are the main stressors that women face in midlife? Here’s a summary.

Family Responsibilities

As mothers and daughters, we are the ‘sandwich generation.’ We want to support our children and our elderly parents or relatives by giving our time, attention, love and financial assistance.

We want to help our children to ‘leave the nest,’ get educated, buy a car, rent or buy their first home, and get married and have babies.

It can be tough for families with lower incomes, single mothers, or those living in remote areas. For example, a friend of mine is a single mother with a full-time job who is paying a mortgage while also supporting two teenage sons: one with university fees, rent repayments, transport and living expenses, one with lifts to work, food, clothing, housing and recreational pursuits. It’s a lot to manage for a single parent.

The AMP.NATSEM report [1] indicates the total cost of raising two children from birth until leaving home is around $812,000 for a typical middle-income Australian family.

We also want our ageing parents to have the best care possible. It’s our opportunity to give back, to repay the time and energy our parents invested in us when we were growing up.

Anyone living in Australia knows that third-party aged care can be costly and there are limited affordable options. That’s why a lot of people end up becoming carers for their parents - especially women who make up 72% of the 2.65 million carers in Australia. A third of all carers are daughters.

Of course, this comes at a financial cost to the carer. Carers Australia estimates that becoming a carer reduces lifetime earnings by around $39,600 per year on average. Over a lifetime, that total lost income and superannuation for carers in Australia equates to a combined total of $567,000, comprising $392,000 in wages and $175,000 in super.

In some cases, there is an overlay of midlife separation and divorce (‘silver splitters’). Women tend to fare worse financially due to the gender pay gap, time off for child rearing and having generally fewer superannuation savings built up over their working lives.

Divorced women are also at a greater risk of falling into poverty, especially in older age. Over a third of single women will live in poverty by age 60 due to the "reverse-wealth trajectory" that many women experience over their lifetimes.

Health Concerns

Midlife is the gateway to ageing. It starts with the onset of menopause and which directly or indirectly affects a woman’s quality of life. Around 80% of women in Australia experience at least one symptom that disrupts work such as exhaustion, sleeplessness, night sweats, mental health concerns, weight gain and brain fog.

Aside from menopause are age-related changes such as increased vascular stiffness, inflammation and related increased risk of chronic diseases including cardiovascular disease and diabetes.

It’s clear that in midlife, women's health and health needs change significantly, and there is a financial cost related to paying for medical treatment and the implications for our work.

Women in midlife are less likely to apply for promotions, pursue training or take on new roles while struggling with menopause symptoms.

Research in Australia shows that the more frequently women reported experiencing menopause-related symptoms and the more bothersome the symptoms were, the less engaged they felt at work, less satisfied with their job, the greater their intention to quit their job and the lower their commitment to the organisation.

As a result, many women take extended breaks from work or retire early at this time of life. Around 25% decide to throw in the towel at this time and retire on average 7.4 years earlier than men on average, resulting in a loss of earnings upwards of $577,512 per woman, and significantly impacting a woman’s ability to save for retirement.

Many are at the peak of their careers, facing decisions about leadership roles, career changes, or early retirement.

Work pressures

The professional landscape for women in midlife is equally challenging. Many are at the peak of their careers, facing decisions about leadership roles, career changes, or early retirement. However, these choices are often complicated by:

Gender discrimination in the workplace
The impact of menopause on work performance and career progression
The need to balance career ambitions with family responsibilities

Despite these challenges, more women than ever are in the workforce, with twice as many women aged 55-64 working compared to men. This resilience is commendable, but it also highlights the need for better support systems in the workplace and opportunities to build resilience, so that women are better equipped to bounce back from stress, and thrive.

Strategies to Support Financial Wellbeing

Despite the challenges, there are effective strategies that women can employ to maintain financial well-being during this tumultuous period.

Advocate for Workplace Support

Given that we spend a third of our lives at work, workplaces play an important role in supporting women through midlife transitions. Here's what to look for and advocate for in your organisation:

Menopause-specific policies that provide flexibility and reasonable accommodations
Open channels for discussing midlife challenges without stigma
Initiatives that promote engagement and inclusion of older women in the workplace

Research shows that organisations with positive messages and initiatives for older women create more engaged and supported employees.

It’s important that workplace approaches focus on evidence-based, best-practice approaches so that they are legally compliant, safe and effective.

Prioritise Financial and Health Education

Knowledge is power, especially when it comes to navigating the complexities of midlife. Focus on:

Improving your financial literacy to make informed decisions about savings, investments, and retirement planning
Enhancing your health literacy to better manage menopause symptoms and age-related health changes
Taking advantage of live workplace education programs or seeking out community resources on these topics

Education is most effective if it is tailored to your workplace and/or personal circumstances, and if it is delivered live so that you can ask questions and interact with others. That could take the form of specific books, government websites, live Zoom webinars, live coaching sessions and so on.

Seek Tailored Support

Every woman's situation is unique, so cookie-cutter solutions don’t cut it! For example, one has young children and

When looking for tailored support, consider:

Consulting with a financial advisor to create a personalised plan that accounts for your specific circumstances and goals
Working with healthcare professionals to develop a comprehensive health management strategy to suit your personal needs
Using employee assistance programs, professional services and/or community services that offer specialised support for women in midlife.
Gaining support to make behaviour changes that support health and build resilience, such as drinking less alcohol, consistent exercise, and healthy sleep practices.

Embracing Resilience and Growth

The challenges faced by women in midlife are significant, but they're not insurmountable. By understanding the unique pressures of this life stage and implementing targeted strategies, women can not only weather the storm but emerge stronger and more financially secure.

Remember, the resilience demonstrated by women who "just get on with it" is a powerful asset. Coupled with the right support systems, education, and personalised strategies, this resilience can be the key to thriving financially during midlife and beyond - and it’s something we can build on.

As we continue to advocate for better workplace policies, increased awareness of midlife challenges, and more comprehensive support systems, we pave the way for future generations of women to navigate this life stage with greater ease and financial stability.

MIdlife may be complex, but with the right tools and mindset, it can also be a period of unprecedented growth, empowerment, and financial wellbeing. Let's embrace the challenge, support one another, and show the world just how brilliantly women can thrive in the face of life's perfect storm.

References/Citations

Money Magazine 2023, 'The high price of being a full-time carer', Money Magazine, viewed 14 June 2024.
Australian Institute of Health and Welfare (AIHW) 2000, 'Informal care', in Australia's welfare 2000, AIHW, Canberra, viewed 14 June 2024.
AMP & NATSEM 2006, 'The cost of caring in Australia 2002 to 2005: Who cares?', AMP.NATSEM Income and Wealth Report, issue 13, May, viewed 14 June 2024.
Monash University 2022, 'Women's reverse wealth trajectory leads to poverty in older age', Lens, 6 April, viewed 14 June 2024.
Women's Agenda 2023, 'We need to start talking about the financial impact of menopause on women's retirement', Women's Agenda, viewed 14 June 2024.

The Road to Resilience: Overcoming Midlife Health and Financial Hurdles