I know, it’s not the most cheerful topic, but hear me out. Recently, I attended a wake and it struck me how often funeral costs go unplanned. We’re all dealing with a lot of emotions in those situations, so it’s easy to just go with the flow and accept whatever arrangements are presented.
But as with most things in life, planning ahead can make a big difference. Funeral expenses are a significant financial consideration that often gets overlooked. Let’s open this conversation up because, while it might be difficult, it’s an important part of being financially responsible and ensuring your loved ones aren’t burdened during a difficult time.
Nonetheless, it is important for adults of all ages to consider and be acquainted with its cost, to ease the load of loved ones and to safeguard against unfair pricing.
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The Importance of Understanding and Planning Funeral Costs
The average cost of a 3-day funeral in Singapore is $8,232, and prices vary greatly based on a multitude of different preferences, with 3-day funerals ranging anywhere from $3,000 to $25,000.
The Competition Authority (CCCS) in November 2023 published a report highlighting the lack of transparency in funeral prices. Potentially unfair practices have also been highlighted, where consumers reported that the final price they were made to pay was much higher than what was initially reported to them due to undisclosed charges. Having a good understanding of the various aspects influencing funeral costs and a general idea of price information is thus paramount in ensuring one does not fall prey to such unfair practices.
Understanding factors influencing funeral costs and using the right tools, such as a funeral directory, to identify suitable funeral packages is thus an important aspect of financial planning, given the potentially high financial burden it might entail. Informed planning ensures both financial and psychological certainty for loved ones, providing surety that the deceased’s wishes are seen through, with a fixed, certain and planned cost.
When budgeting for funeral expenses, consider incorporating them into your long-term financial goals. I have plentiful of budgeting resources for young adults which can help you with this process.
Factors Influencing Funeral Costs
As aforementioned, funeral prices have a wide discrepancy. This is due to the highly customisable nature of funerals, which makes it important to understand the factors that can influence funeral costs and ensure one is not paying additional costs unnecessarily.
1. Religion
Funerals practices, and therefore costs, are largely often informed by the religious inclinations of the deceased. Although there is a large discrepancy in cost, this factor is not one that can be controlled, given the chief importance is to pay respect and honour the wishes and beliefs of the deceased.
Funeral practices vary greatly across religions, which explains the difference in cost. For example, Taoist funerals are most expensive, with an average cost of a 3-day funeral at $11,191, given that rituals are often elaborate, with a large number of paper offerings such as cars, houses and other everyday items.
Muslim funerals are the most affordable with an average of $1,431, since Islamic beliefs require the body be buried as soon as possible, thus a direct, 1-day ceremony is preferred with simple rituals.
2. Duration of Funeral – Direct or Traditional
Direct funerals are the simpler and more affordable option, typically costing below $2,000 regardless of religion. Direct funerals are often held on the same day that the deceased passes, where the body is transported straight to the crematorium or place of burial. A short ceremony typically takes place, in the presence of close friends and family.
Traditional funerals, which typically last 3 to 5 days, cost more, with a 3-day funeral averagely costing $8,232. Traditional funerals allow a grieving period where all friends and family are likely able to attend and support the family. Religious rites are be observed across the days. Cost increases as the number of days increase.
Direct funerals are more affordable and eases the burden on the family from needing to plan and see through a multi-day funeral. But it also means sacrificing the concept of ‘returning home’, which some cultures privilege, and likely only close friends and families would be in attendance. Traditional funerals set aside a particular period for next-of-kin to grieve and support each other as well and is the most common choice.
3. Location of Funeral
Funerals can be held under HDB void decks, at one’s private residence (landed properties), or at funeral parlours. This is typically decided based on the deceased’s place of residence.
Funeral parlours, such as Singapore Casket, have a dedicated area to hold funerals, which is used commonly for those who stay in condominiums, and don’t have a usable communal space. The rental of such funeral parlours is estimated to cost between $650 to $1,800 a day.
4. Catering, Caskets, Transportation
Catering and refreshments at a funeral service is also a significant customisable cost, with variable quantities and quality of food. Some premium services would also include service staff with the catering.
Caskets are another customisable item, where the design and detail of a casket can dramatically increase its cost, along with its material and shape.
Hearses, which transport the casket, typically from one’s home to the crematorium or the place of burial, are also customisable. Premium hearses are typically a Mercedes or equivalent with full glass, while standard hearses are not fully transparent.
5. Cremation or Burial Cost
Cremations at Mandai crematorium typically cost $100, and burial fees at Chua Chu Kang Cemetery are either $315 or $940, depending on the religious plot selected for burial.
Always Check and Clarify Cost with Funeral Directors, Ideally Locking in a Price
It is far easier to safeguard against unfair practices by funeral directors with an understanding of what affects funeral prices, and a basic idea of how much is reasonable to spend, and what customisations one wants.
Additionally, performing a background check on funeral directors, such as looking at Google or Facebook Reviews, is a good indication of how trustworthy a funeral director is. Also, always clarify with funeral directors what hidden costs there are, and lock in a price that can be agreed upon on the outset, without further customisations. It is important to also make clear who the decision makers in the family are, so funeral directors can only add cost with their consent.
While not a direct replacement for funeral costs, some life insurance plans may provide some coverage. Learn more about the different options available in my insurance posts.
Identify Hidden Costs and Identify Funeral Packages using Parting Goodbyes
Parting Goodbyes, a funeral directory, is a useful resource which allows for easy identification of funeral packages based on your needs. The aforementioned factors can be filtered and sorted, thereby allowing one to easily compare funeral directors that provide similar services.
Hidden costs, which funeral directors might use to artificially depress costs, are also highlighted in the directory, making known what to clarify with funeral directors, and what the true final cost would be.
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