There’s an investment you may not have considered that can achieve good returns, and it’s guaranteed that you’re going to need it one day: your funeral.
A 2023 study from Australian Seniors shows that the cost of funerals increased by 20 per cent between 2019 and 2023 with a basic burial funeral costing $18,652 and up to $5953 for a basic cremation funeral.
Funerals are becoming increasingly expensive, so its worth thinking about the costs early on.Credit: Louie Douvis
The money you spend on your funeral is exempt from pension and aged care means testing, so on top of the savings you get by paying for your funeral in today’s dollars, there can be benefits for your pension and aged care fees.
From a pension point of view, if you are affected by the asset test, then each $1000 you spend on your funeral could increase your pension by $78 a year. If Shirley is getting a part pension of $500 a fortnight, and she pays........