Savers urged to consider pre-paid cremation as Brits 'can't afford to die'

The emotional toll of losing a loved one is being compounded by a financial crisis, with nearly a quarter of those over state pension age lacking a will in the first place and the cost of dying soaring, leading to an increase in state-funded funerals. According to Sun Life's latest report, it costs £9,797 to die in the UK, leaving one in five families facing significant financial strain while trying to say goodbye.

Alicia Hempsted, life insurance expert at MoneySuperMarket, said: "People are already struggling to cover the basics like food, energy bills and daily essentials, so the idea of paying for a funeral, whether their own or a loved one's, can feel out of reach. Many people don't realise just how the cost of dying can add up; from funeral fees and burial or cremation costs to flowers, transport, and legal bills. Understandably, many of us put off thinking about it."

Those who pass away in poverty, alone, or without relatives able to afford burial costs often have their funerals covered by the taxpayer, known as welfare or public health funerals. The rising number of families struggling to cover funeral expenses has resulted in an average of 12 taxpayer-funded funerals occurring daily across the UK, according to the Local Government Association as highlighted by the BBC.

When checking poverty levels against regional funeral expenses, Birmingham emerges as the leading area where "people can't afford to die" based on MoneySuperMarket analysis.

The city faces a devastating combination of average funeral costs reaching £3,446 while 43% of residents live in poverty, creating a perfect storm that overwhelms grieving families.

London is equally caught up in the cost-of-dying crisis, with average funeral expenses hitting £4,181. Manchester follows closely behind with funeral costs around £2,806, though higher poverty levels place additional pressure on struggling families.

Alicia said: "Planning ahead can make a huge difference - whether that's taking out life insurance to help your loved ones cover the costs, putting money aside, or simply having conversations with family. It's about making sure that when the time comes, your loved ones aren't left with a financial burden on top of their grief."

Amid the escalating cost of dying crisis, looming tax amendments pose a threat to unsettle those who have already devised strategies to cope with the expenses. Chancellor Rachel Reeves is anticipated to implement additional tax revisions in the Autumn Budget after Labour's volte-face on its flagship welfare reform, which was projected to economise £5 billion.

There is widespread apprehension that the Chancellor might target savings instruments like ISAs to bridge the shortfall.

Specialists at Celebration of Life, a direct cremation service provider, revealed that more people are looking to pre-paid funeral plans as they fear their end-of-life savings may be in jeopardy.

Peter Shuttleworth, General Manager at Celebration of Life, urged people to consider arranging and paying for their cremation or funeral in advance, saying: "For some, it may be many years before the plan is used. For those concerned about the erosion of their savings, a pre-paid plan offers certainty. It's a simple, dignified solution for people who want to take control of their legacy, avoid future price shocks, and protect their family from unexpected costs."