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They say nothing is certain in life except death and taxes. But while there are tough penalties if you don’t pay tax that's due, no one is chasing you to plan your funeral.
A survey of 1,047 Which? members in July 2024 found that 24% hadn’t thought about their funeral at all, while 29% had considered it but hadn’t shared their plans with family.
Meanwhile, 46% of members had discussed their preferences with loved ones, but many specified what they didn’t want, rather than what they did.
With funeral costs running high, planning ahead can save your family from extra stress. Here, we outline the cost of dying and explore the funeral options you can consider.
Funeral costs dropped post-pandemic, but life insurer SunLife reports they’re climbing again.
In 2023, the average basic funeral cost rose by 4.7% to £4,144 and could reach £5,126 by 2028.
A basic funeral covers essentials such as a coffin, cremation or burial, as well as service fees. However, ‘send-off’ extras, such as a wake or estate administration, pushed the total to an average of £9,658 last year – a record high.
SunLife’s Cost of Dying report found cremation remains the most popular choice, averaging £3,795, while burials cost around £5,077.
Six in 10 people reported cutting back on extras last year to reduce the cost, and spent less on flowers, chose a cheaper coffin and had a wake at home.
Given the financial pressures, it’s no surprise that direct funerals are becoming more common. In 2023, one in five families chose a direct cremation, which costs around £1,498 – about 60% less than a standard cremation.
These no-frills funerals skip ceremonies entirely, with the deceased taken straight to the crematorium, usually in a plain coffin.
Which? members cited cost as a significant factor for choosing a direct cremation. One member said: ‘I do not wish to burden my spouse and children with further emotional and financial costs. Spend money on a drink and meal to remember me.'
Which? member Marjorie, from Devon, held a direct cremation for her late husband, Tony, in 2016. ‘My husband said: ‘‘For goodness’ sake, don’t spend money on a lavish funeral. Be generous with food and drink afterwards, but don’t spend on people in uniform and flowers’’.'
'It’s easy for some people to say: ‘‘Just chuck me in a box’’, but they won’t be living with the consequences of that.'
Marjorie organised a service in the local village hall once Tony’s ashes were returned. ‘We displayed them in a miniature beer keg – he’d have been so pleased about that,' she added.
Direct cremations have a lower environmental impact, as embalming fluids and caskets aren’t required. But these funerals might not suit everyone. For instance, the deceased could be cremated anywhere in the UK at any time, so you won’t have additional time to say goodbye.
Dr Kate Woodthorpe, director of the Centre for Death and Society at the University of Bath, said: ‘With local funeral directors, there is an assumption that the body is in the area and can be visited if needed.
‘With direct cremation, it’s a completely different model – the body is collected and that’s it. There’s a big question around who the funeral is for. It’s easy for some people to say: ‘‘Just chuck me in a box’’, but they won’t be living with the consequences of that.'
You may have very specific requests that you want for your funeral. One member told us: ‘I want my ashes spread into my favourite river so my daughters can visit a nice place if they want to.’
Others wished to be buried in the same graveyard as family or, as one members said: ‘Put in line with our 23 cats’ graves in our field.’
It’s important to put your wishes in writing to avoid any doubt or disagreement among loved ones.
You could write a Letter of Wishes – a document that accompanies your will. However, be aware that this isn’t legally binding and shouldn’t be witnessed when signed and dated, to prevent any claims that it is a binding will.
Nuala O’Neill, from west London, wants to be cremated when she dies, and her ashes left with her sister.
The 65-year-old said: ‘No one wants to talk about death but, as with taxes, it’s not going to go away. I’m single, I don’t have any dependants so I thought if I organise it it’s done.
‘Anytime I see something or think or something – like I’d want to have a party, or I’m Catholic so I would like to have a mass – I write a little note.’
Nuala started thinking about what she wanted in 2020 after a friend passed away and had left no written wishes.
Nuala bought a funeral plan for £1,595 with Pure Cremation, including £100 extra to have her ashes delivered to her sister within a week. ‘My sister knows it’s here because she is my next of kin. She doesn’t have to think about how to pay for it or what I would like.'
Most people plan to leave funds for their funeral, but only 43% save enough, leaving an average shortfall of £1,872, according to SunLife.
Prepaid funeral plans can help families avoid financial stress by locking in today’s prices and exempting the funds from inheritance tax. You can nominate a loved one for the firm to contact while buying the plan.
Many choose these plans hoping they can reduce the emotional stress on their family as you can make your own arrangements in advance. This is the case for David, 85, from Hampshire, who bought two plans from Dignity in 2012 for him and his wife. Their three children know about the plans, which are kept in a file.
David said: ‘We wouldn’t want our children to have to deal with [organising a funeral]. If they’re pretty shocked, the last thing I want them to have to do is this under stress, when they could just open up an envelope, follow a checklist, call someone and get on with it without any great fuss.
‘We knew that in 2012 it was going to cost less than it would in years to come, and we wanted to put a fixed price on it.’
Despite their popularity – SunLife found four in 10 people opted for prepaid plans last year – these plans once faced criticism for aggressive sales tactics and poor value, leading to regulatory changes.
‘We knew that in 2012 a funeral was going to cost less than it would in years to come, and we wanted to put a fixed price on it.’
Since July 2022, the Financial Conduct Authority (FCA) has overseen this sector, providing protections like Financial Services Compensation Scheme (FSCS) coverage of up to £85,000 if a provider collapses. Customers can now also take complaints to the Financial Ombudsman Service, while new rules include bans on cold calling and commission payments.
Funeral plan providers must follow FCA Consumer Duty rules, introduced last July, to ensure customers receive clear communication, fair-value products, and time and support when they need it.
Funeral plans can be 'guaranteed,' covering third-party costs, or 'contribution,' where families might need to cover shortfalls.
A Which? survey in July of 266 members who have a funeral plan, or are weighing up getting one, found that a third were unaware a prepaid plan might not cover all costs, and one in eight were unsure.
When choosing a plan, payment methods matter; some instalment options carry significant fees. Opting for a 0% interest credit card can offer a more affordable solution for those paying over time, with some offering up to 21 months interest-free.
Richard Williams has arranged multiple plans over the years to ensure his family face no financial burden when he dies.
He first took out a funeral plan when he lived in South Africa between 1970 and 2005.
Once he returned to the UK, he took out a life insurance policy with LV, then after a couple of years bought two funeral plans with Dignity for him and his wife at £3,750 each. The plans offered cremation as standard, but Richard later changed both plans to cover burials at a cost of £1,600. He has also bought two burial plots from his local cemetery in Milton Keynes.
Shortly after buying his plot, Richard was told he had a very short time left to live due to a terminal illness diagnosis. The 77-year-old said: ‘I have tried to do everything needed to make life as uncomplicated for my wife and daughters after my death.
‘I don’t want to be a burden and my wife feels the same. When we die we don’t want someone else to find the money to bury us, it’s organised and that’s it. Basically all our children have to do is arrive there.’
Three-quarters of members surveyed said they’d cover funeral costs from their estate.
While bank accounts are frozen upon death, banks typically release funds with an itemised bill and a death certificate. If this isn’t timely, families may pay upfront and be reimbursed after probate, which took an average of nine weeks in August 2024.
Over 50s life insurance provides a fixed lump sum upon death, but unless you have a limited life expectancy, you may end up paying more in premiums than the policy pays out. Medically underwritten life insurance can offer better value.
For those receiving benefits or tax credits such as pension credit, state support may be available. In England, Wales and Northern Ireland, Funeral Expenses Payments cover cremation or burial and up to £1,000 for other costs, while Scotland’s Funeral Support Payment averages £1,800.
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