It’s a common idiom: “These kids will be the death of me!”. It’s a tongue-in-cheek expression used to convey exasperation, one that rarely evokes genuine thoughts of death.
But there’s a trend that might render the phrase more literal than usual: rising funeral costs.
Of course, funeral costs traditionally come after your death and are not the cause. But with prepaid funerals now common, those costs can be a cause of anxiety for the individual or their family.
So what exactly is, in purely financial terms, the ‘cost of dying’? This is the subject of a newly released report from comparison site Savvy, one that reveals some interesting findings.
Funeral cost fork in the road
Perhaps the first thing to note is that funeral costs have been rising steadily over the past decade or so.
The rate of annual increase since 2011 has ranged from 6 per cent to 11 per cent. Such figures probably won’t surprise many. With the cost of living increases recently, a parallel increase in the cost of dying is to be expected. Inflation tends not to discriminate!
Looking beyond the overall trend, though, Savvy’s figures reveal a significant gap between the two main forms of dealing with a loved one’s remains.
If cost is a factor when choosing between burial and cremation, the latter becomes a far more attractive option.
But even so, Savvy’s survey reveals that the cost of cremation has more than doubled since 2011. The cost of a basic cremation went from $1435 in 2011 to $3108 in 2019.
The rate of increase for basic burials has been slightly slower, but the cost still far exceeds that of cremation. In 2011, the cost of a basic burial was $4000. By 2019, it was $8048. That’s well over double the cost of cremation.
Such costs might seem eye-watering to some, and these are just the starting points for each of those options. Beyond ‘basic’, in terms of funerals, there’s ‘standard’ and ‘premium’. And unsurprisingly, there’s a commensurate increase in funeral costs with each step up.
A standard funeral in Australia costs an average of $9403 for a burial and $5591 for a cremation. Premium funerals have an average cost of $11,279 for a burial and $7187 for a cremation.
How does a premium funeral differ from a standard one?
A premium funeral can include a number of additional services. These include, flowers, newspaper notices, celebrant service, memorial books, and an audio-visual presentation.
And if the service includes burial, the choice of coffin/casket can make a big difference, cost-wise. Caskets can range from very basic to extravagantly adorned.
This, of course, is not a factor for those who choose cremation. Some may choose to keep a loved one’s ashes in an urn, but the variation in urn costs won’t vary quite as much.
One interesting thing to note about Savvy’s findings is a dramatic variation in burial costs between states. The two most populous states, New South Wales and Victoria, provide the starkest example of this.
In Victoria, the average cost of a metropolitan (Melbourne) burial is $7148. The NSW metropolitan (Sydney) equivalent is $15,244. That’s a very big difference.
Personal preferences and beliefs
For those whose focus is purely on cost, cremation becomes a rather obvious choice. But some religions and cultures take a dim view of cremation. Even non-religious individuals may not like the thought of themselves being reduced to ashes.
On the other hand, the general consensus is that cremations are environmentally friendlier, creating a smaller carbon footprint than burial. That might be a more important consideration for the person whose life is being celebrated.
While it’s not a topic many discuss readily, a conversation around funeral preferences can save much angst. This may revolve around funeral costs or simply how the individual would prefer to be treated when they’re gone.
It’s a discussion my siblings and I had with both our parents before they died, and were glad we did.
Have you thought about funeral costs, either your own or that of a loved one? Has that discussion included a comparison of cremation with burial? Why not share your thoughts in the comments section below?
Also read: Lyn wants her bank to refund $50,000 she lost, money she needs for her funeral
