Planning for funeral costs

Funeral costs are one of the most commonly overlooked items in retirement planning, yet they've risen faster than general inflation for years and can land on a family at an already difficult time. A little planning — even just setting money aside or recording your wishes — can make a real practical difference to those you leave behind.

What a funeral typically costs. According to the SunLife Cost of Dying Report 2026, the average simple attended funeral in the UK costs around £3,828, with cremation funerals averaging roughly £4,200 and burials averaging around £5,440. Add typical extras — flowers, a wake, a headstone — and the total often climbs to around £5,000-£5,500. Costs vary significantly by region: Northern Ireland is generally the cheapest at around £3,100, while London is the most expensive at close to £4,900.

Direct cremation — the low-cost option. A direct cremation, where there's no attended service at the crematorium, typically costs from around £1,200-£1,900 — considerably less than a traditional funeral, since it removes the most expensive elements (the hearse, venue hire, and service itself). Many families still hold a separate memorial or celebration of life afterwards, on their own terms and budget. Direct cremations now account for around one in five UK funerals.

Help if you're on a low income. If you or the person who died receives a qualifying means-tested benefit — including Pension Credit, Universal Credit, or Income Support — you may be eligible for a Funeral Expenses Payment from the DWP, which can contribute towards the cremation or burial fee and up to £1,000 towards other costs. Local councils can also arrange a public health funeral in cases of genuine hardship. It's also worth knowing that reasonable funeral costs can normally be paid from the deceased's estate before other debts are settled.

Prepaid funeral plans. A prepaid plan lets you agree and pay for your funeral in advance, locking in today's prices against future rises. Since July 2022, all prepaid funeral plan providers must be authorised by the FCA, and your money must be held safely in a regulated trust or insurance product — always check a provider is FCA-authorised before paying anything. Plans typically cover the funeral director's own fees, but third-party costs (cremation or burial fees, and particularly burial plots) aren't always fully included, so check the details carefully, especially for a burial plan.

Practical steps to take now.

• Get at least two or three funeral director quotes if arranging a funeral — prices for a broadly similar service can vary by 50% or more in the same area
• Record your wishes — cremation or burial, any specific requests — somewhere your family will find them; you're not legally required to have a religious service, a particular coffin, or any of the traditional extras
• Consider whether a direct cremation would suit your wishes, especially if keeping costs down matters to you or your family
• If considering a prepaid plan, confirm the provider is FCA-authorised and check exactly what's included, particularly for burials
• Factor a realistic funeral cost into your overall financial plan, alongside care costs and other later-life expenses

None of this makes an inevitably difficult time easy, but having even a rough plan in place — savings set aside, wishes recorded, or a regulated plan in place — removes one layer of pressure from the people you leave behind.