The Rising costs of funerals This year's Cost of Dying Report from Sun Life Direct will be published shortly; undoubtedly showing a further increase in funeral costs; something I am so certain about I would stake my reputation on. I would gladly run naked through the streets of Cornwall if they have actually dropped – but fear not people of Cornwall; a drop in funeral costs is certainly not on this year’s agenda, let alone next year’s, or the year after that .................
Last year the average cost of a funeral was £3,590 however with regional variations, funeral costs can range from £3,028 in the North West to £4,836 in London; and don’t forget that is just the so called essentials.
Over50choices has calculated that the average cost of a funeral has risen by 6.71% over the last 10 years and if this continues, by 2025 they will exceed an eye watering £6,000 – you can see for yourself by using our funeral calculator.
Costs aren’t helped by the increase in cremation fees as reported again this week by The BBC. With cremation costs rising by a third in the last 5 years and 80% of the population choosing this type of service, it's easy to see why prices are increasing at such an alarming rate.
Prepaid funeral plans
One way in which you can get ahead of the game and avoid future funeral inflation is by paying in advance with a prepaid funeral plan; effectively freezing costs at today's prices and saving your family a tidy sum of money in the process; not to mention relieving them from the pressure of having to make funeral arrangements when the time comes.
Funeral plan prices are determined by the average cost of a funeral in the UK and the level of service you require. If you choose to pay monthly instalments over longer periods than one year, you will pay additional administration charges for the privilege of spreading your costs but that might be handy if you are on a budget.
Depending on your age you can choose to spread your payments by up to 20 years. The longer you pay of course the more the plan will cost you in the long run however your monthly payments will be lower, making them more affordable. And when you consider that costs will exceed £6,000 in just 10 years time, even with additional administration fees you should still save money.
It’s worth keeping in mind that as sure as eggs is eggs (I would love to know where that strange expression comes from) funeral plan providers increase their prices every year. What's more just to make matters that little more confusing, they do it at different times of the year, so it is certainly worth shopping around for the best funeral plan; you could save yourself as much as £600 if you choose the right plan at the right time.
Over50choices can compare funeral plans for you as we are continually comparing the leading plan prices however as a starting point, here are the usual times of the year you can expect a hike in costs.
This is not set in stone however so if you want to be sure, just get in touch.
Those eagle eyed amongst you will notice that 2 providers are about to increase their prices over the next month. With some providers we have seen increases by as much as £399 so if you are thinking about buying a plan, it may be better to act sooner rather than later, as every year spent ‘thinking about it’ could be painful on the pocket.
At the end of the day, for now anyway funeral inflation is here to stay so however you intend to cover costs and help your family, it pays to put some form of plan in place, be it a funeral plan, life insurance plan or savings.
And if you need any more food for thought before taking the funeral planning plunge, we will as always be reporting on The Sun Life Cost Of Dying Report as soon as it is released – I wouldn’t expect my naked dash through Cornwall just yet!