Spiralling funeral costs could see people paying £26,000 for their final send off in 30 years’ time.
According to Safe Hands Funeral Plans, the cost of funerals is set to increase by more than 570% in the next 30 years. That means that the outlay on a funeral which today costs around £4,600 will set you back over £25,000. Even in ten years’ time, the costs will have almost doubled.
The forecasts are based on figures published by the Competition and Markets Authority (CMA) which shows a compound growth in prices of 6%, compared with the current inflation rate of under 1%. The CMA is currently investigating pricing in the industry as costs continue to rise.
One way round avoiding the hike in prices is through a pre-paid funeral plan where you pay up front at a fixed price. Safe Hands reports growing sales of their plans as people look for ways to pay for their own funerals without having to burden their loved ones when they die,
For many people facing a change of financial circumstances during lockdown, reviewing finances is now a necessity. Safe Hands reports that many new clients have diverted funds away from low return savings and investments, into their pre-paid funeral plans. This is particularly so for the under forties, who stand to save the most by because of their longer life expectancy.
Tom Gormanly, CEO of Safe Hands: “It’s a sad indictment of our desolate times that thirty per cent more of us have been thinking about death over the last few months. Our latest figures show that many folks will benefit financially from planning for their end of life arrangements sooner rather than later. ”