Banner

Funeral costs rise faster than inflation

Funeral costs have risen by 2.9% to £3,693, 29 times higher than UK inflation according to new research by SunLife.

Although the overall cost of dying has fallen by 3.6% to £8,126, basic funeral costs have risen dramatically in the past 12 months. The figures indicate an increase of 92.3% on funeral costs since 2004.

People’s funeral spending has also risen by 9.1%. Despite the average spending cost of £2,000, 99% of those surveyed admitted to not knowing their love one’s send-off wishes.

Financial provisions have become more common with 59% making provisions to pay for their funeral before they die, up from 57% last year.

The research also shows that:

  • 84% made provisions to cover funeral costs
  • 27% had put forward a pre-paid funeral plan
  • of the 17% who had to cover all the costs by themselves, 21% had to borrow money from friends and relatives and 21% used a credit card.

Those who had not made any financial provisions or were unable to cover their funeral costs have spent an average of £2,449 to cover the shortfall.

SunLife managing director Dean Lamble said:

“When you consider that the overall cost of dying has fallen by £300 and spending on the send-off has increased by almost 10%, many people may be spending this ‘extra cash’ on the ‘wrong’ things.

“While it’s encouraging to see a slight fall in the overall cost of dying, as well as an increase in the number of people making financial provisions such as funeral plans, it is clear from our report that many of us are still very uncomfortable talking about death.”

Contact us today to discuss about your personal finances.