Planning ahead for funeral costs could help households manage their finances and protect their long-term plans
Andy Burnham’s plans to reform the State Pension triple lock from April 2030 have prompted debate about the potential impact on pensioners and future generations alike. Some critics have warned that the changes could mean pensioners receive smaller increases than they would have done under the existing system, while some working-age people have raised concerns about whether they will receive the same benefits from the triple lock when they themselves retire. The announcement will no doubt cause concern among people approaching retirement as well as younger households planning for the future, possibly prompting them to take a closer look at their finances and consider where they can manage their finances without compromising the plans they have made for later life.
Peter Shuttleworth is Head of Operations at Celebration of Life, one of the UK’s established providers of direct cremation. He said: “The finances of UK workers and pensioners alike seem to be taking hit after hit at the moment. Whether at the petrol pumps or on the supermarket shelves and of course coming into the winter months when they’ll be switching on their heating, household costs are increasingly top of mind for all of us.
“Our teams are taking an increasing number of calls from consumers who say they are having to thoroughly review their finances and their plans for the future, as in many cases the financial picture they see today is very different from how it may have looked three, four or five years ago.”
One option people may wish to explore when reviewing their longer-term finances is a pre-paid direct cremation plan. An increasingly popular alternative to more traditional funeral arrangements, a direct cremation takes place without mourners present, allowing families and friends to arrange a separate farewell or memorial at a time and place of their choosing. Celebration of Life’s pre-paid direct cremation plans are ideal for people who want to plan ahead, allowing customers to document their wishes in advance and spread the cost through monthly instalments. Instalment options range from six to 60 months. Families whose loved ones have kept their payments up to date can redeem the plan if the beneficiary dies after the first 24 months, even where the plan has not yet been fully paid.
Peter said: “One of the most popular selling points of our direct cremation plans is their transparency. There is one clear price, so people know how much they will be paying.
“People are also increasingly recognising the benefits of planning ahead, including the ability to secure the cost of their funeral at today’s price, whether they live for another 10, 20 or 50 years.”
Pre-paid funeral plans are regulated by the Financial Conduct Authority (FCA), and customers of FCA-authorised funeral plan providers have access to protection through the Financial Services Compensation Scheme (FSCS) if an authorised provider fails, subject to the FSCS’s rules and limits.
For Celebration of Life, planning ahead is ultimately about helping people retain control over important decisions and costs at a time when circumstances can otherwise leave them feeling uncertain.
