What is the cost of dying in the UK?
Only one thing can be guaranteed in life... death. But what is the cost of dying in the UK? This article explains the cost of dying in the UK and how you can help reduce the burden on loved ones by preparing for the inevitable.
According to recent research, funeral costs in the UK are continuing to rise at a higher rate than inflation. The study by AXA shows that the average UK funeral now costs £3,284 - an average annual increase of 7% every year since 2004.
Whilst people are continuing to live longer, many are failing to make the necessary provisions to prepare for when they die. Many families have found that the flagging economy has forced them to tighten their monthly expenditure over the last few years, especially as higher inflation rates have squeezed budgets even further by increasing the cost of household items.
This was echoed in the AXA study, as they found that 17% of the population currently struggles to afford a funeral, with an average shortfall of £1,246 on the cost of their funeral - further illustrating how important it is to plan forward and take control of your affairs even after death.
There are many different ways you can make provision for a funeral, the most popular being: personal savings, over 50’s plan, life insurance or a pre-paid funeral plan from a funeral provider.
Another way to prepare for the inevitable is writing a Will. A Will is sometimes perceived as something that the rich have to avoid overpaying on their Inheritance Tax, however, that is only a small part of why you should make a Will. A Will is initially put in place to ensure that your Estate is distributed to those who you wish, as well as ensuring that anyone under 18 you are responsible for have the security of a legal guardian should the worst happen.
Although it isn’t something you may want to think about, planning for the future is one of the most important things you can do and can be the best gift you could make to loved ones. Alongside being able to reduce Inheritance Tax (so your loved ones do not have to pay thousands in unexpected tax bills), you can also ensure that those you care about receive something. There are currently no provisions for friends, unmarried partners, associations (church, charities etc) and pets if you were to die without a Will.
By making a Will you can also appoint legal guardians for your children, so you choose who will look after them if you were to die before they turned 18. Without a Will, the law decides who benefits from your estate and who would be legally responsible for your children – which may not be who you would ideally choose.
Planning for the future is relatively straight-forward and once your arrangements are complete they only need to be reviewed every few years to make sure that they accommodate for any changes to your circumstances.
