Once your plan is paid for, that's it. You won't be asked for a penny more towards the arrangements included in your plan, which is reassuring to know as funeral costs have risen much faster than inflation in recent years. Between 2011 and 2019, average funeral costs increased from £2,971 to £4,202^^, a 41% rise. It is a trend that has been going on for a while and if it continues, by 2028 the average funeral cost in the UK could have risen to £6,206^^^.
At the same time, savers are having to cope with an extended period of low interest rates. This means that while opening a savings account or Cash ISA to pay for a funeral in the future may feel like the safest way to plan ahead, there is no guarantee it will be able to keep up with inflation, never mind rising funeral costs. Alternative products such as over 50’s insurance plans often set the amount you will receive when you take out the policy, and therefore as prices rise over time, the value of what you would get back could be reducing.
An Age Co funeral plan protects against factors outside your control, and provides assistance for your loved ones when they need it most
| Age Co Funeral Plans | Savings account/ Cash ISAs | Over 50’s Life Insurance | |
|---|---|---|---|
| Protection against rising funeral costs | Yes |
No |
No |
| Protection against rising inflation and low interest rates? | Yes |
No |
No |
| Provision of assistance and advice for loved ones arranging a funeral | Yes |
No |
No |
| Includes the services of a trusted funeral director?^ | Yes |
No |
No |
| Can the plan be cashed in at anytime?‡ | Yes |
Yes |
No |
Why are funeral costs rising?
It is a very reasonable question to ask and the answer is there are many factors affecting the recent trend for increased costs including:
- Local authority cuts, which has led to a rise in cremation costs and reduced subsidies for burials.
- Improvements and investments being made to cemeteries and crematoriums to meet energy use targets, which pushes up prices.
- A shortage of space in many cemeteries, resulting in a rise in prices charged by local authorities for burial plots.
- Wage rises for all parties involved.
- An increase in funeral director fees.
Your money in safe hands
The money you pay for your funeral plan is placed in a secured, independent Trust Fund that cannot be accessed by Age Co, Dignity or your nominated funeral director. The money required for your funeral stays in the trust where it is carefully managed until it is needed, ensuring all the services included in your plan can be provided at no additional cost to your loved ones. Find out more about the trust fund here.
