Almost 50% of Britons do not have a will in place, according to a survey of 2,000 adults. The study also revealed that over a third of them feel they are not old enough to consider writing a will. One in five participants in the survey expressed uncertainty about where to start with the process of creating a will. Additionally, the research found that 24% of those surveyed would struggle to cover the costs associated with a family bereavement, while another 21% were unsure if they could manage those expenses. Currently, only a third of respondents have enough cash saved to cover their own funeral expenses if necessary. Furthermore, just 19% have life insurance.
The Annual Funeral Report, published by British Seniors, highlighted the increasing expense of funerals in the UK. The average cost of a funeral now stands at £5,212, representing a 15% rise in just one year. Specifically, the report indicated that burial costs could reach £11,348, while cremation expenses might amount to £9,529. A spokesperson for the insurance company emphasised that funerals are costly, and not having plans in place to cover these expenses can leave families with unexpected bills, adding significant stress during an already challenging time. The report incorporated a survey of 1,500 adults who had arranged a funeral in the past five years. It found that almost half of them had to contribute to, or fully cover, the costs of the funeral, with an average out-of-pocket expense of £2,732.
Reasons for personally bearing funeral expenses ranged from sudden deaths without financial preparation to wanting to provide a more fitting farewell and inadequate savings by the deceased. A third of survey participants who arranged funerals were surprised by the higher-than-expected costs, leaving many feeling stressed and overwhelmed by the financial demands. Amid the ongoing cost-of-living crisis, affordability of a dignified funeral has become more daunting for one in three individuals. The spokesperson for British Seniors Life Insurance stressed the importance of preparedness for such situations to avoid financial burdens on loved ones during a difficult time.
The report served to underscore the lack of readiness among many people for dealing with the financial implications of death, whether for a loved one or for oneself. The spokesperson urged individuals to consider the broader financial implications and take proactive steps to ensure that their nearest and dearest do not face financial difficulties alongside their grief. The report painted a stark picture of the financial challenges that can arise from not having a will or sufficient savings in place, shedding light on the need for better financial planning for end-of-life scenarios.
With funeral costs on the rise and many Britons unprepared for these expenses, the survey results serve as a wakeup call for prioritising financial preparedness. As the cost of funerals continues to climb, having a will, sufficient savings, and possibly life insurance can help individuals and families navigate these challenging financial waters. Ensuring that financial plans are in place for end-of-life matters can alleviate stress and uncertainty for loved ones during an already emotionally trying time, highlighting the importance of estate planning and financial readiness.