Financial insecurity in later life is widely documented. Research from organisations including the Financial Conduct Authority, Age UK, the Pensions and Lifetime Savings Association and retirement specialist Just Group shows that many adults approaching or already in retirement do not feel fully prepared for the financial realities ahead.
Common concerns include pension adequacy, rising everyday living costs and, critically, the ability to cope with unexpected expenses — with fear of running out of money remaining one of the most persistent anxieties in later life.
Amid these concerns, one predictable yet frequently overlooked cost is that of funerals. With the average funeral now exceeding £4,200, and total end-of-life costs nearing £9,800, families are often confronted with large, unforeseen financial outlays at a vulnerable time1.
Just Group’s later-life research highlights that many retirees operate with little financial headroom and limited contingency planning for one-off shocks. For households living on fixed or declining incomes, sudden costs — such as funeral bills — can therefore compound existing financial pressure rather than being absorbed gradually.
Although evidence shows that a majority of people make some provision for funeral costs, a substantial proportion still fall short of covering the full expense, transferring the cost burden to relatives, often adult children. This reflects wider findings from Just Group that important later-life costs are frequently underestimated or postponed in financial planning conversations.
Peter Shuttleworth, Head of Operations at dedicated direct cremation and funeral plan provider Celebration of Life, points to the emotional and social drivers behind this anxiety:
“There is still significant social pressure to hold elaborate funerals, even when the cost can be ruinous. Families often feel guilt or shame if they believe they are not honouring the departed sufficiently, and that pressure can push people into debt.”
This uncertainty is exacerbated by regional price variation across the UK and by the fact that funeral costs have continued to rise at a rate above inflation for much of the past two decades.
Recognising funeral costs as a practical and unavoidable part of later-life financial planning — rather than treating them as a distant or hypothetical issue — could help reduce anxiety, support better decision-making, and prevent avoidable hardship for families already navigating the wider financial challenges of retirement.
Peter Shuttleworth continued: “Despite common assumptions people who plan their funerals or end-of-life wishes often feel liberated and at peace. Our funeral plan customers often express relief when decisions are made – reducing uncertainty for their loved ones about how they would like to say their final goodbye. Ignoring the inevitable doesn’t protect people from fear it can makes things worse. Planning ahead can actually give people the freedom they need to live without unnecessary anxiety.”
