Funerals and Funeral Planning - UK - August 2014

INTRODUCTION
Methodology
Abbreviations
EXECUTIVE SUMMARY
Over half of over-50s have not been involved in organising a funeral in the past 10 years
Figure 1: What people did to help with funeral arrangements in the past 10 years, May 2014
Nearly half rely on their property to finance future funeral
Figure 2: Preparedness for own funeral, May 2014
Over-50s express conventional preferences
Figure 3: Selected funeral wishes, May 2014
Nearly seven in 10 prefer a funeral as a celebration of life
Figure 4: Attitudes towards funeral arrangements and ceremony, May 2014
What we think
ISSUES AND INSIGHTS
Overcoming the perception that talking about funerals is a taboo
The facts
The implications
Encouraging adults to formalise their end-of-life plans
The facts
The implications
Opportunities for less conventional approaches to drive further growth in the market
The facts
The implications
TREND APPLICATION
Trend: Open Diary
Trend: Make it Mine
Trend: Prepare for the Worst
MARKET DRIVERS
Key points
Trends in population age structure
Figure 5: Trends in the age structure of the UK population, 2009-19
Mortality rate
Figure 6: Trends in the number of deaths and crude death rate, UK, 2002-12
General life expectancy
Figure 7: Life expectancy at birth, UK, 1980-82 to 2010-12
Home ownership
Figure 8: Home ownership, by age, May 2014
Acorn group
Figure 9: Acorn group, by age, May 2014
Living situation
Figure 10: Detailed lifestage, by age, May 2014
State support for funerals
Impending shortage of burial sites
Figure 11: Trends in the proportion of cremations, 1980-2012
Burials mired in time delays
WHO’S INNOVATING?
Key points
Personalisation
Figure 12: Examples of coffin designs from Creative Coffins, July 2014
Eco-friendly innovation
Digital innovation
Fashion and celebrity influence
Funerals on a budget
MARKET SIZE AND FORECAST
Key points
Components of funeral cost
Figure 13: Components of basic funeral cost
Strong growth in the funerals market, despite falling mortality rate
Figure 14: UK funerals market value, at current and constant prices, 2009-19
Market will repeat its strong performance in the next five years
Figure 15: Best- and worst-case forecast of UK funerals market, 2009-19
Forecast methodology
COMPANIES AND SERVICES
Market overview
Figure 16: Market shares of the UK funeral business, 2014
The Co-operative
Dignity
THE CONSUMER – INVOLVEMENT IN FUNERAL ARRANGEMENTS
Key points
Females are key decision-makers in times of grief
Figure 17: Involvement in funeral arrangements, May 2014
ABC1s adopt a more proactive approach to funeral organisation
Figure 18: Involvement in funeral arrangements, by social grade, May 2014
Women more involved with funeral planning, whilst men contribute financially
Figure 19: What people did to help with funeral arrangements, by gender, May 2014
Approach to funeral organisation varies by social grade
Figure 20: What people did to help with funeral arrangements, by social grade, May 2014
THE CONSUMER – WILLINGNESS TO DISCUSS FUNERAL WISHES
Key points
The topic of death is steadily becoming less of a taboo
Figure 21: Willingness to talk about funeral arrangements with family, May 2014
Mortality becomes more ‘real’ with age
Figure 22: Willingness to talk about funeral arrangements with family, by age, May 2014
Openness to talking about funeral wishes wanes with education and social grade
Figure 23: Willingness to talk about funeral arrangements with family, by social grade and highest education level, May 2014
Involvement in someone else’s funeral as trigger for thinking about one’s own
Figure 24: Willingness to talk about funeral arrangements with family, by prior involvement in funeral arrangements, May 2014
THE CONSUMER – HOW PREPARED ARE PEOPLE FOR THEIR FUNERAL
Key points
Over a quarter unaware of the actual funeral costs
Figure 25: Awareness of funeral costs, March 2014
Over-50s overconfident about meeting costs of their funeral
Figure 26: Level of consumer confidence in affording funeral costs, March 2014
Over eight in 10 over-50s have done at least something to prepare for their deaths
Figure 27: Number of steps people have taken to prepare for their funeral, May 2014
Making a will as a more cost-effective way of outlining final wishes
Figure 28: Preparedness for own funeral, May 2014
Financial products related to funeral planning have lower uptake
Figure 29: Selected ways of preparing for own funeral, by age, May 2014
Home-owners rely on value of their home to finance their funeral
Figure 30: Selected ways of preparing for own funeral, by housing situation, May 2014
THE CONSUMER – FUNERAL WISHES
Key points
Demand for cremations far outstrips that for burials
Figure 31: Selected funeral wishes, May 2014
Interest in cremations rises with household income
Figure 32: Selected funeral wishes, by household income, May 2014
Over-50s express conventional preferences for their funerals
Figure 33: Selected funeral wishes, May 2014
Men show less engagement with own funeral planning
Figure 34: Selected funeral wishes, by gender and age, May 2014
THE CONSUMER – ATTITUDES TO FUNERAL COSTS AND IMPACT ON FAMILY
Key points
Funerals as a celebration of life
Figure 35: Attitudes towards funeral arrangements and ceremony, May 2014
Cost – not an issue
Figure 36: Attitudes to cost of funerals and impact on family, May 2014
Women worry more about being a burden on their family
Figure 37: Attitudes to funeral arrangements and impact on family, May 2014
APPENDIX – THE CONSUMER – DEMOGRAPHIC OVERVIEW
Figure 38: Demographic overview – Gender and age, May 2014
Figure 39: Demographic overview – Age within gender, May 2014
Figure 40: Demographic overview – Social grade, May 2014
Figure 41: Demographic overview – Marital status and working status, May 2014
Figure 42: Demographic overview – Gross annual household income, May 2014
Figure 43: Demographic overview – Region, May 2014
Figure 44: Demographic overview – Household tenure and cards held, May 2014
Figure 45: Demographic overview – Acorn group, May 2014
Figure 46: Demographic overview – Household size, May 2014
APPENDIX – THE CONSUMER – INVOLVEMENT IN FUNERAL ARRANGEMENTS
Figure 47: Involvement in funeral arrangements, May 2014
Figure 48: Involvement in funeral arrangements, by demographics, May 2014
Figure 49: What people did to help with funeral arrangements, May 2014
Figure 50: Most popular what people did to help with funeral arrangements, by demographics, May 2014
Figure 51: What people did to help with funeral arrangements, by involvement in funeral arrangements, May 2014
Figure 52: Willingness to talk about the topic of funerals, by involvement in funeral arrangements, May 2014
Figure 53: Preparedness for own funeral, by Involvement in funeral arrangements, May 2014
Figure 54: Funeral wishes, by involvement in funeral arrangements, May 2014
Figure 55: Attitudes to cost of funerals and impact on family, by involvement in funeral arrangements, May 2014
APPENDIX – THE CONSUMER – WILLINGNESS TO DISCUSS FUNERAL WISHES
Figure 56: Willingness to talk about the topic of funerals, May 2014
Figure 57: Willingness to talk about the topic of funerals, by demographics, May 2014
Figure 58: Involvement in funeral arrangements by willingness to talk about the topic of funerals, May 2014
Figure 59: What people did to help with funeral arrangements by willingness to talk about the topic of funerals, May 2014
Figure 60: Preparedness for own funeral by willingness to talk about the topic of funerals, May 2014
Figure 61: Funeral wishes by willingness to talk about the topic of funerals, May 2014
Figure 62: Attitudes to cost of funerals and impact on family by willingness to talk about the topic of funerals, May 2014
APPENDIX – THE CONSUMER – HOW PREPARED ARE PEOPLE FOR THEIR FUNERAL
Figure 63: Preparedness for own funeral, May 2014
Figure 64: Preparedness for own funeral – I have made a will, by demographics, May 2014
Figure 65: Preparedness for own funeral – All/part of the cost of my funeral will be met from the value of my estate, by demographics, May 2014
Figure 66: Preparedness for own funeral – I have discussed my wishes for my funeral with a family member, by demographics, May 2014
Figure 67: Preparedness for own funeral – I have savings set aside specifically to cover my funeral, by demographics, May 2014
Figure 68: Preparedness for own funeral – I have a whole-of-life insurance plan that will cover some or all of my future funeral costs, by demographics, May 2014
Figure 69: Preparedness for own funeral – I have a written set of funeral arrangements in place, by demographics, May 2014
Figure 70: Preparedness for own funeral – I have a pre-paid funeral plan that will cover some or all of my funeral costs, by demographics, May 2014
Figure 71: Funeral wishes, by preparedness for own funeral – I have discussed my wishes for my funeral with a family member, May 2014
Figure 72: Funeral wishes, by preparedness for own funeral – I have made a will, May 2014
Figure 73: Funeral wishes, by preparedness for own funeral – I have a whole-of-life insurance plan that will cover some or all of my future funeral costs, May 2014
Figure 74: Funeral wishes, by preparedness for own funeral – I have a pre-paid funeral plan that will cover some or all of my funeral costs, May 2014
Figure 75: Funeral wishes, by preparedness for own funeral – I have a written set of funeral arrangements in place, May 2014
Figure 76: Funeral wishes, by preparedness for own funeral – I have savings set aside specifically to cover my funeral, May 2014
Figure 77: Funeral wishes, by preparedness for own funeral – All/part of the cost of my funeral will be met from the value of my estate, May 2014
Figure 78: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – I have discussed my wishes for my funeral with a family member, May 2014
Figure 79: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – I have made a will, May 2014
Figure 80: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – I have a whole-of-life insurance plan that will cover some or all of my future funeral costs, May 2014
Figure 81: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – I have a pre-paid funeral plan that will cover some or all of my funeral costs, May 2014
Figure 82: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – I have a written set of funeral arrangements in place, May 2014
Figure 83: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – I have savings set aside specifically to cover my funeral, May 2014
Figure 84: Attitudes to cost of funerals and impact on family, by preparedness for own funeral – All/part of the cost of my funeral will be met from the value of my estate, May 2014
Repertoire of preparedness for own funeral
Figure 85: Repertoire of preparedness for own funeral, May 2014
Figure 86: Repertoire of preparedness for own funeral, by demographics, May 2014
Figure 87: Preparedness for own funeral, by repertoire of preparedness for own funeral, May 2014
APPENDIX – THE CONSUMER – FUNERAL WISHES
Figure 88: Funeral wishes, May 2014
Figure 89: Most popular funeral wishes, by demographics, May 2014
APPENDIX – THE CONSUMER – ATTITUDES TO FUNERAL COSTS AND IMPACT ON FAMILY
Figure 90: Attitudes to cost of funerals and impact on family, May 2014
Figure 91: Agreement with the statement ‘I like the idea of a funeral being a celebration of life, rather than a more traditional ceremony’, by demographics, May 2014
Figure 92: Agreement with the statement ‘It is important to make at least some plans for the kind of funeral you would like to have’, by demographics, May 2014
Figure 93: Agreement with the statement ‘It is important that wider family and/or friends are present at a funeral’, by demographics, May 2014
Figure 94: Agreement with the statement ‘Having a religious aspect to a funeral is important’, by demographics, May 2014
Figure 95: Agreement with the statement ‘If I were arranging a funeral the cost is not something I would worry about’, by demographics, May 2014
Figure 96: Agreement with the statement ‘I would be interested in pre-paying for a funeral planning service to reduce the burden on my family’, by demographics, May 2014
Figure 97: Agreement with the statement ‘I worry that my family will struggle to cover the costs of my funeral’, by demographics, May 2014