Rising Funeral Costs Push Families Toward Crowdfunding Solutions

Rising Funeral Costs Push Families Toward Crowdfunding Solutions.

A recent study conducted by SunLife reveals that the average total cost of a funeral amounts to £9,797, prompting many individuals to sell their belongings to cover these expenses.

The expense associated with death has reached an unprecedented level, leading an increasing number of bereaved families in the UK to resort to crowdfunding or liquidating assets to finance funeral expenses, as reported.

According to the insurer SunLife, which has tracked funeral costs in the UK for the past twenty years, the average price of a basic funeral has surged by 3.5% over the past year, now standing at a record £4,285.

This new peak signifies a staggering 134% increase in the cost of a simple funeral over the last 21 years, rising from £1,835 in 2004, in contrast to a 75% rise in consumer price inflation during the same timeframe.

SunLife's findings, derived from interviews with over 1,500 individuals and families, as well as 100 funeral directors, indicate that 2020 previously marked the highest recorded cost for a simple attended funeral. However, due to the pandemic and other influencing factors, prices decreased in the subsequent two years.

Furthermore, the average total "cost of dying," which encompasses funeral expenses, professional fees, and a wake, has also reached a historic high of £9,797, following a 1.4% increase last year.

SunLife's recent findings indicate that last year, Frank Sinatra's "My Way" reclaimed its position as the most frequently played funeral song in the UK, surpassing the Christian hymn "Abide With Me," which had maintained this ranking for the preceding three years. Additionally, new entries in the top ten included "Over the Rainbow," performed by Judy Garland.

Many families facing financial constraints encounter difficulties in covering funeral expenses, with numerous individuals reporting that they had to deplete their savings or seek financial assistance from friends or relatives.

In the previous year, one in sixteen individuals, or 6%, who reported significant financial difficulties related to funeral costs turned to crowdfunding as a solution—this figure has doubled from the 3% recorded in 2023.

This increase is evident in the growing number of funeral and memorial crowdfunding campaigns hosted on various fundraising platforms. In the past month alone, numerous funeral crowdfunding requests have emerged on the GoFundMe platform in London, which is identified by SunLife as "the most expensive place to die."

Furthermore, the percentage of individuals experiencing financial difficulties who reported selling personal belongings rose slightly, from 18% to 19% compared to the previous year, as noted in the latest SunLife "Cost of Dying Report."

A survey revealed that 92% of respondents expressed a preference regarding their funeral arrangements. Among these individuals, 26% indicated a desire for direct cremation, which entails no funeral service and the absence of family or friends. Additionally, 16% preferred a non-religious humanist funeral, a rise from 9% the previous year.

Humanists UK stated that a funeral led by a humanist celebrant serves as both a celebration of life and a respectful, personalized farewell, making it an appropriate choice for those who were not particularly religious.

Furthermore, the research highlighted a significant trend in 2024, as funeral directors reported an increase in families utilizing video links and applications, allowing relatives and friends who could not attend the funeral in person to view the ceremony remotely.

Mark Screeton, the SunLife chief executive, said: “It’s so important for people to talk more about their funerals so that loved ones aren’t left to organise things with little idea about what the deceased would have wanted.”

The relentless rise in the cost of dying in the UK highlights a troubling reality for bereaved families, many of whom are forced to make significant sacrifices to afford funeral expenses. With the average cost of a funeral reaching £9,797, the financial burden has become insurmountable for many, leading to increased reliance on crowdfunding and the liquidation of personal assets.

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Despite societal advances, the growing disparity between inflation and funeral costs reflects a lack of affordability and accessibility in honoring loved ones. This grim trend underscores a pressing need for systemic change to address the escalating financial strain on grieving families.