NZ Woman's Weekly

Savings plan or pre-paid funeral?

My partner and I are both in our early fifties and recently we have been thinking about planning for our funerals. Is it better to go for a pre-paid funeral plan, or just have a separate savings account for that set purpose? Would we be penalised in any way when we retire and collect superannuation?

I think planning for your funerals in your early fifties is a touch premature. The average life-span of New Zealand females is 82 and for males it’s 78. I would continue with a general savings plan until you are at least 60 years old. This will offer you more flexibility at a time when demands on your savings come from a host of other directions aside from funerals.

I reckon a sensible savings scheme that covers upcoming costs such as the house repaint, the teenagers’ university fees, and funerals, is a lot more flexible than a wide range of specific plans. The exception would be health insurance if you can afford it, but I accept there are those who find it easier to save if there are target-specific plans. Some go for Christmas club accounts and the like. Maybe that’s you. If a funeral plan helps you save, then good.

Do you have a consumer question for Kevin? Email, or post to Weekly Consumer, PO Box 90119, Victoria St West, Auckland 1142.

Issue 1541

Subscribe to the magazine

Simon Barnett’s 7 magic rules

In this week's issue of New Zealand Woman's Weekly magazine: Simon Barnett reveals his seven magic rules for raising girls.

New Zealand Woman's Weekly is the country's most-loved women's magazine, bringing a wide variety of news, stories, recipes and helpful hints to the home every week.

Subscribe now

Subscribe to our newsletters

Receive the latest celebrity news, recipes and beauty tips, delivered right to your inbox.