Funeral costs: How to say goodbye on a budget

Losing a loved one can be a difficult experience and navigating the emotional, legal, and financial aspects can be confusing.

While families and friends mourn, planning the funeral can also be overwhelming, leaving many in a distressing state.

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Burial and cremation costs paid to local councils have increased by up to 50 per cent in the last year, the Funeral Directors Association of New Zealand says.

An average funeral costs $8000-$10,000, but it can range from as little as $5000 up to $20,000 or more, according to Health NZ-Te Whatu Ora.

The ministry says funerals are often the third most expensive purchase that many people will ever make after a house and car.

Watch Gillian Boyes' full interview below.

Funeral costs typically involve cremation and burial services of the funeral director or you can opt to do this yourself.

But Gillian Boyes, the chief executive of Funeral Directors Association of NZ says while everyone loves a good funeral, no one is keen on the bill.

The funeral industry has published guidance to help families better understand the options available and manage the expense of a funeral in the wake of increased costs.

In one case, it was 48 per cent higher than last year.

Boyes says each year, the association looks at what the council is charging or proposals for burial and cremation fees "because it's quite a big part of the funeral costs".

"Now, that's not a cost that the funeral directors come up with," she told Pacific Days' Ma'a Brian Sagala.

"That's a council charge, and so the 48 per cent happens to be the Wairoa District Council which has increased their prices for both burial and cremation.

"So, that's pretty rough on a community that's gone through what it's gone through in recent months. That was one we called out.

"But we're seeing increases that are probably in line with inflation on those costs, although in some cases, well in excess."

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Boyes said increases could be seen in Marlborough with 18 per cent, Auckland at five per cent - "not too unexpected there",

Wairoa in the Hawke's Bay-Tairāwhiti on the East Coast of the North Island, at 48 per cent, would be the highest of the councils, she said.

"South Waikato was also proposing an increase that sort of ranged somewhere between 50 and several 100 per cent. Now, we're not sure if they've gone ahead with that because they haven't published that on their website.

"So that was the other one that was potentially a massive increase. In both cases, the amounts they charge are probably less than in some parts of the country.

"But you're talking about parts of New Zealand that have got average low socio-economic levels so the hurt is still felt."

Here are some options Boyes believes can help struggling families meet their funeral expenses amid the council's cemetery fee hikes.

Pre-plan your funeral, she said. "We all know we're going to die so have a plan.

"I see lots of commentary on funeral insurance. We have something different that we offer which is a funeral trust, which means you can put money in and you know when the time comes, you can use that for your funeral or it's returned to your estate. Insurance doesn't always do that returning bit.

"But if you haven't got around to pre-planning then it's best to be upfront with the funeral director and say look these are my limitations. This is what I need for it to be really special for me and my family, and then work with the director on what you could do yourself versus what the funeral director does and come with a meaningful package, that lets you say farewell in a more affordable way."

Watch Tipene Funerals' senior director Fiona Tania Bakulich's interview below.

Can the government help? A funeral grant can assist with some of the funeral costs, Work and Income says.

However, the grant can only be used towards expenses such as professional services for preparing the body for cremation or burial, for example, balming, and the cost of a casket.

Funeral directors say a government grant needs an urgent increase amid soaring funeral costs.

Following the Budget announcement in June, Boyes said the government had missed an opportunity to address the Work and Income funeral grant which had not been updated for two decades.

She said the current cap of about $2500 failed to cover the average burial costs "unless you were being cremated with no funeral service at all".

"We would love to see that increase somewhere near the $7500 if you die in an accident. Beyond that, there are other ways that family manage - through whānau support and just managing through their communities.

"It's tough. Most of us don't have five, six, seven to 12, 13, $14,000 lying around, do we? So, you do need to be thinking in advance.

"Those council burial and cremation costs vary widely, $1000 in Taupo versus $7000 in New Plymouth so that's a massive difference.

"I suggest people look at a few funeral directors' websites in their location and often funeral directors will have an idea. They might say here's our package for 50 people, that's a burial. Here's what we charge and they could itemise the things you would get for that."

The cheapest place to die in Aotearoa is Taupo and the Far North, the Funeral Directors Association of NZ says.

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