The costs of a funeral are rising all the time at an average rate of 6.38% each year between 2007 and 2014. That’s more than the interest rates on most savings accounts.
A recent research report suggested that funeral costs will continue to rise considerably, to an estimated £4,489 by 2019 and more than £5,400 by 2021. According to the “cost of dying report”, the average funeral cost has risen from £1,230 in 1997 to £4,000 today – an increase of over 225%. Some reports suggest that by 2024, a funeral will cost on average £7,000 to £8,000.
Protect your loved ones by starting your pre-paid plan today. It can make life much easier for loved ones at a difficult time.
14% of people who have organised a funeral in the past four years admitted it caused them financial concern with the average shortfall standing at £2,371. Of this group, 42% dug into savings or investments to help pay for the funeral, a quarter borrowed money from friends or relatives and 22% put extra debt on a credit card to deal with the sudden cash outflow.
Sales of plans rose by nine per cent to be worth more than £500 million last year, according to data from the Funeral Planning Authority (FPA). FPA data suggests the total number of plans in force is now around 950,000, with 60,000 paying out last year. It estimates that £3.2 billion is invested in plans across the sector. The FPA data is understood to account for more than 90 per cent of all pre-paid funeral plans.
The national average cost of dying figure masks significant variations at a regional level, with the average cost in the London area now a staggering £10,498.
A Funeral Plan lets you pay towards your funeral in advance and at today’s price. It is a way of taking control of the unexpected, setting out the arrangements and limiting the costs. It’s practical, sensible and should be an essential part of your financial end of life planning.
Our experts can arrange a tailored funeral plan for you or offer options which will meet your wishes and budget.