Sun Life Direct’s 10th annual Cost of Dying survey shows an increase of 7.1% in the past year. This is based on costs such as probate and headstones and flowers, as well as the basic cost of a funeral. The price of dealing with death now stands at an average of £7,622.

The increasing cost of dying has meant a 50% increase in funeral poverty in the past year. 

Many over 60s are ill prepared for end-of-life costs, according to new research by Dr Kate Woodthorpe quoted by the Centre for Death & Society in this month's newsletter. Just under a quarter of over 60s (23%) have no savings at all, increasing to almost a third of women (29%) and full-time carers (31%).

Dr Woodthorpe carried out qualitative interviews with people over the age of 60 to contribute to the national debate about who is expected to bear the costs associated with ageing.

She says: “The debate about post retirement finances is often dominated by the costs of social care, but funerals are one of the universal demands on money and deserve greater attention.

"We already know that there are 1.8million pensioners living in poverty and the general assumption that savings work for everyone is too simplistic. As funeral poverty stands at just over £131million, it is important to understand the various attitudes towards spending and saving within the population so that we can sensibly address the funeral funding crisis.

"It is disappointing that the number of people who struggle to afford a funeral shows no sign of abating. Funeral poverty has increased more than 50% in the last three years and it is likely that this will continue."

"There is a notable postcode lottery of funeral costs, especially in terms of cremation and burial.

"The issue of who picks up the cost of an individual’s funeral is set to become ever more pressing as the baby boomers come to the end of their lives and the death rate starts to climb. This is not just an issue for older people but for the generations that come behind them and could well be left picking up the bill.”