A survey of 1,047 Which? members in July found that 24% hadn’t thought about their funeral at all, while 29% had considered it but hadn’t shared their plans with family.
Meanwhile, 46% discussed their preferences with loved ones, but many specified what they didn’t want, rather than what they did.
With funeral costs running high, planning ahead can save your family from extra stress. Here, we outline the cost of dying and explore the funeral options you can consider.
How much does a funeral cost?
Funeral costs dropped post-pandemic, but life insurer SunLife reports they’re climbing again.
In 2023, the average basic funeral cost rose by 4.7% to £4,144 and could reach £5,126 by 2028.
A basic funeral covers essentials like a coffin, cremation or burial, and service fees, but ‘send-off’ extras, such as a wake or estate administration, pushed the total to an average of £9,658 last year -a record high.
SunLife’s Cost of Dying report found cremation remains the most popular choice, averaging £3,795, while burials cost around £5,077.
Six in 10 people reported cutting back on extras last year to reduce the cost, such as spending less on flowers, choosing a cheaper coffin and having a wake at home.
Find out more:The rise in direct funerals
Given the financial pressures, it’s no surprise that direct funerals are becoming more common. In 2023, one in five families chose a direct cremation, which costs around £1,498 - about 60% less than a standard cremation.
These no-frills funerals skip ceremonies entirely, with the deceased taken straight to the crematorium, usually in a plain coffin.
Which? members cited cost as a significant factor for choosing a direct cremation. One member said: ‘I do not wish to burden my spouse and children with further emotional and financial costs. Spend money on a drink and meal to remember me.'
Which? member Marjorie, from Devon, held a direct cremation for her late husband, Tony, in 2016. ‘My husband said: ‘‘For goodness’ sake, don’t spend money on a lavish funeral. Be generous with food and drink afterwards, but don’t spend on people in uniform and flowers’’'.
Marjorie organised a service in the local village hall once Tony’s ashes were returned. ‘We displayed them in a miniature beer keg – he’d have been so pleased about that,' she added.
Direct cremations have a lower environmental impact, as embalming fluids and caskets aren’t required. But these funerals might not suit everyone. For instance, the deceased could be cremated anywhere in the UK at any time, so you won’t have additional time to say goodbye.
Dr Kate Woodthorpe, director of the Centre for Death and Society at the University of Bath, said: ‘With local funeral directors, there is an assumption that the body is in the area and can be visited if needed.
‘With direct cremation, it’s a completely different model – the body is collected and that’s it. There’s a big question around who the funeral is for. It’s easy for some people to say: ‘‘Just chuck me in a box’’, but they won’t be living with the consequences of that.'
Find out more:How to make your wishes known
You may have very specific requests that you want for your funeral. One member told us: ‘I want my ashes spread into my favourite river so my daughters can visit a nice place if they want to.’
Others wished to be buried in the same graveyard as family or, as one members said: ‘Put in line with our 23 cats’ graves in our field.’
It’s important to put your wishes in writing to avoid any doubt or disagreement among loved ones.
Find out more:Should you get a prepaid funeral plan?
Most people plan to leave funds for their funeral, but only 43% save enough, leaving an average shortfall of £1,872, according to SunLife.
Prepaid funeral plans can help families avoid financial stress by locking in today’s prices and exempting the funds from inheritance tax. You can nominate a loved one for the firm to contact while buying the plan.
Many choose these plans hoping they can reduce the emotional stress on their family as you can make your own arrangements in advance. This is the case for David, 85, from Hampshire, who bought two plans from Dignity in 2012 for him and his wife. Their three children know about the plans, which are kept in a file.
David said: ‘We wouldn’t want our children to have to deal with [organising a funeral]. If they’re pretty shocked, the last thing I want them to have to do is this under stress, when they could just open up an envelope, follow a checklist, call someone and get on with it without any great fuss.
‘We knew that in 2012 it was going to cost less than it would in years to come, and we wanted to put a fixed price on it.’
Despite their popularity - SunLife found four in 10 people opted for prepaid plans last year - these plans once faced criticism for aggressive sales tactics and poor value, leading to regulatory changes.
Since July 2022, the Financial Conduct Authority (FCA) has overseen this sector, providing protections like Financial Services Compensation Scheme (FSCS) coverage of up to £85,000 if a provider collapses. Customers can now also take complaints to the Financial Ombudsman Service, while new rules include bans on cold calling and commission payments.
Funeral plans can be 'guaranteed,' covering third-party costs, or 'contribution,' where families might need to cover shortfalls.
A Which? survey in July of 266 members who have a funeral plan, or are weighing up getting one, found that a third were unaware a prepaid plan might not cover all costs, and one in eight were unsure.
Find out moreOther ways to pay for a funeral
Three-quarters of members surveyed said they’d cover funeral costs from their estate.
While bank accounts are frozen upon death, banks typically release funds with an itemised bill and a death certificate. If this isn’t timely, families may pay upfront and be reimbursed after probate, which took an average of nine weeks in August.
For those receiving benefits or tax credits like pension credit, state support may be available. In England, Wales, and Northern Ireland, Funeral Expenses Payments cover cremation or burial and up to £1,000 for other costs, while Scotland’s Funeral Support Payment averages £1,800.
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source https://www.which.co.uk/news/article/how-should-you-pay-for-your-funeral-aOXfm2N6pQy7