Funeral costs putting families under pressure

Nearly one in five families are worrying about money when paying for a loved one’s funeral.

According to new data from SunLife, the cost of the typical funeral has gone up by 3.5% in the last year to £4,285.

Cremations have also gone up in price, increasing by 7% to £1,597.

And that’s before we factor in other related costs, such as professional fees for administering the estate and hosting a wake.

With these extra expenses accounted for, the overall cost of dying has gone up by 1.4% to £9,797.

Families worried about send-off costs

Unsurprisingly, this is causing added anxiety for bereaved families at a time when feelings might already be running high.

SunLife’s research shows that 18% of families experience notable financial worries when paying for a funeral.

Only around half of those who made provisions to pay for their funeral before they passed away put enough aside to cover the entire cost.

As a result, many organisers are having to make up the remaining cost – almost £2,371 on average - themselves.

How are families making up funeral costs?

Families who are worried about the cost of funerals are using different methods to get hold of the money, including:

• dipping into their savings and investments - 33%
• paying the outstanding amount on a credit card - 24%
• borrowing money from a friend or family member - 23%
• selling belongings - 19%
• borrowing money from a loan provider - 12%

But many worried organisers are also feeling lasting financial consequences after paying for a funeral, such as:

• a lower standard of living - 22%
• having to cut back on essentials such as food - 8%
• struggling to pay bills or rent - 6%

The financial strain is also affecting the health of many people, with three-quarters saying their mental health has been affected, and six in ten saying they’ve seen an impact to their physical health.

Funeral organisers trying to cut costs

Unsurprisingly, many families are looking at ways to keep costs down where possible.

In fact, 58% of people are choosing to cut back on some elements of the funeral to save money. This includes:

• choosing a cheaper coffin - 18%
• spending less on flowers - 17%
• having the wake at home - 15%
• shopping around for the best price - 12%
• not using a hearse or limousine - 10%

What help can I get with funeral costs?

Dealing with the death of a loved one is difficult enough, but it’s so much harder when you find yourself facing a massive bill at the same time.

If you have any questions on how to deal with this situation, check out our guide on how to get your finances in order after the death of a loved one and what financial support you may be able to claim.