Only a minority of people are making any effort in planning for funeral costs, says the Funeral Planning Authority (FPA). According to trade paper the Funeral Times their survey of 1,000 people 18 and over. More than half admitted never having considered how they might pay for their funeral. Nearly a third of over 55s had given the matter no thought at all.
Just 14 percent could make an accurate estimate of funeral costs (typically between £3500 and £4000 in June 2016). Two in three underestimated the cost, many thinking the cost of a funeral would be less than £2,500.
Why they hadn’t considered planning for funeral costs:
- They found it too depressing.
- Or they were too young tio die.
- Others had other more pressing financial priorities.
In effect, they had left the problem to their family.
Planning for funeral costs.
Despite a widespread reluctance to think about planning for funeral costs, there are many people who are thinking ahead.
Over a quarter have either purchased a (proper) funeral plan, life insurance policy or put money aside in savings for their funeral (and watched it shrivel through inflation!) When asked why they had put the plans in place, 51 percent of those respondents said they wanted their affairs to be in order as they are getting older. They might have further benefited from our special bonus of Legal Planning Vouchers (you will have to check if it is still available).
- 31 percent said they like to plan for everything financially including their funeral.
- 19 percent had experienced the death of loved ones with no funeral plan, and wanted to avoid that happening again
- 18% didn’t think the family would have the cash unless they made financial plans themselves. They didn’t want to make matters worse.
Graeme McAusland, CEO of the FPA commented on the survey: “Although the research suggests that many are putting off thinking about how they would pay for their funeral, it is encouraging that those who are considering it are actually taking action and making proper financial arrangements.
“The figures show an emerging group of financially astute over 45s are either buying funeral plans, life insurance policies or putting aside savings. This backs up what we are seeing, and that is that demand for and general interest in prepaid funeral plans is significant, particularly, but not exclusively among over 60s.”