Closing the pay gap for women 40+: What HR needs to know

Women over 40 in the UK face the steepest gender pay gap of any age group according to the Office for National Statistics. They hold just half the private pension wealth as men (Pensions Age) and are nearly three times more likely to retire early to provide unpaid care (Financial Times). 

As HR leaders look for ways to redress this imbalance, it’s clear that data alone isn’t enough — intent and accountability are essential for real change. Here’s what HR leaders need to know: 

The gender pay gap in midlife isn’t caused by a single factor. It’s a mix of bias, ageism, and structural barriers that undervalue women’s work and experience. Gendered ageism stereotypes older women as less ambitious and adaptable, while caregiving responsibilities—both for children and aging relatives — limit career progression.

Add to this the motherhood penalty, which compounds over time, and the impact of perimenopause and menopause, which are still under-recognised in most workplaces. These realities shape lifetime earnings and pension wealth, leaving women financially vulnerable in later life.

Despite 85% of UK HR leaders publishing gender pay gap data each year, progress remains slow. According to People Management, a quarter of companies have made no improvement since reporting began in 2017. 

Transparency matters but reporting without corrective action falls short. The upcoming EU Pay Transparency Directive sets a new standard by requiring companies to act on disparities, not just disclose them. However, closing the gender pay gap is not only a compliance exercise but a strategic necessity. 

For UK businesses, this is a wake-up call: employees expect accountability, and companies without robust pay equity strategies risk losing talent and reputation.

To close the gap for women over 40, HR must go beyond programmes and policies and embed equity into systems. For example, organisations that combine gender pay gap reporting with annual pay audits are nearly six times more likely to report that inclusion practices boost business performance.

Start with these three practices:

1. Standardise pay processes: Use structured pay bands and fixed starting salaries to limit bias.
2. Audit pay annually: Regular, data-driven reviews identify and correct disparities.
3. Communicate transparently: Explain how pay decisions are made and benchmarked.

While HR can lead the way, closing the gender pay gap isn’t their responsibility alone. It must be a business-wide priority, tied to leadership objectives and culture.

Women in midlife are often at the height of their experience and leadership potential. For example, many women navigate menopause with remarkable adaptability — developing new strategies, self-advocating, and redefining what effective leadership looks like (HBR).

But adaptability shouldn’t be treated as a solo act. Those who thrive are those supported by networks, sponsors, and cultures where it’s safe to be open about what they need.

Effective support means not only addressing the motherhood penalty and menopause cliff but recognising caregiving as a lifelong reality. And across career stages, flexible work remains one of the most valued levers for retention (People Management).

Culture change also depends on partnership and sponsorship that opens doors. Catalyst research shows 97% of men want to help close gender gaps — HR can harness this momentum by engaging men as co-creators of inclusion.

When workplaces value every stage of a woman’s career, they don’t just advance equality; they strengthen their business.