The Cost of Funerals in New Zealand

Recently One News shared an article about a Kiwi woman, Karen, who was planning her own funeral to avoid debt after a terminal illness diagnosis. Not wanting to burden her family with debt after her death, she is investigating how to DIY her funeral to save on costs, an option that many do not even know is available to them.

One News’ investigation into costs showed that a funeral cost can vary greatly depending on region. On Auckland’s North Shore, the cheapest cemetery plot was $6,100, compared to $2,200 in Invercargill.

The high cost of burials can impact burial choices, sometimes forcing people away from their cultural traditions and preferences. As cremations are much cheaper than burials, sometimes it is the only option for a family, even when cultural beliefs dictate burial as appropriate.

Who Pays for a Funeral?

The person who makes the funeral arrangements is responsible for paying the bill. Sometimes people will have a pre-paid funeral trust arranged in advance or will have funds set aside in their will.

However, many people pass without having funeral plans pre-made. Some people pass without sufficient funds in their estate to pay for a funeral, which leaves their loved ones responsible.

People who served in the armed forces and their families may be eligible for some funding support:

• New Zealand Veterans Affairs can pay a one-off funeral contribution of up to $2,988.91, depending on eligibility.
• New Zealand Defence Force may cover the cost of a funeral up to $12,500, depending on eligibility.

If someone died as a result of personal injury and this is an accepted ACC claim, ACC can pay a funeral grant of up to $7,491.95.

Why are the Costs so High?

One reason is that funeral homes are 24-hour operations. The costs of holding a funeral do in part cover the funeral home’s running costs, staffing, power, etc. In general, the cost of everything is going up across New Zealand. Our increasing high fuel price impacts everything from the cost of transporting a body to transporting flowers to your local florist.

If you want to be more environmentally friendly, that costs money too. Cremation releases a huge amount of CO2 into the atmosphere but is cheaper than purchasing a funeral plot and holding a traditional funeral.

Skipping the embalming means a body will deteriorate faster, so a service may have to be held within only a couple of days. Embalming will cost more and will allow a service to be pushed out to allow for out-of-towners to travel.

Funeral directors and funeral homes play an important role for many and can be wonderful guides for people experiencing grief. However, it is important to know that there is no right or wrong way of holding a funeral. Funeral decisions are deeply personal.

How can I Minimise Funeral Costs?

We’ve put together some resources on funeral costs and what to expect. You can use our Farewell Planning Sheet to help you with the planning steps.

Creating a plan ahead of time can help you control the costs so that your loved ones are less vulnerable to incurring expenses. Letting people know what you want to happen at your farewell also means you can set expense expectations. This can minimise chances that your family feel pressure to spend a large amount of money on your farewell if this is not what you wanted.

Less than one-third of the New Zealand ‘senior’ population have funeral arrangements in place (according to 2019 research by NZ Seniors.)

For Karen, having friends family and friends spend their travel money on visiting her while she is alive, instead of travelling to a funeral, is far more important.

For others, holding a traditional service is very important. It’s important to know that there is no right or wrong type of funeral to have. However, planning in advance can take one difficult thing away from your loved ones as they cope with your loss.