[Survey on Decision-Making and Costs in Funerals] National Consumer Affairs Center of Japan Also Issues Warning! Amid Pointed Issues Over Funeral Costs, the Reality of Funerals Where About 80% Do Not Compare and About 40% Make Decisions Within 3 Hours

*Total of "Received an explanation but was not confident I fully understood," "Received an explanation but proceeded without fully understanding," and "Was in a state where I could hardly understand the explanation." Aiming for a world where anyone, anywhere in the country can have a safe, secure, and regret-free funeral and life ending, San Holdings, Inc. (Tokyo Headquarters: Minato-ku, Tokyo; Osaka Headquarters: Kita-ku, Osaka City, Osaka; President and CEO: Satoshi Harishima; TSE Prime: 9628), which provides total support, conducted an awareness survey on "The Reality of Decision-Making and Costs in Funerals" targeting 500 men and women in their 40s to 80s who have been involved in a funeral within the past 5 years. This survey revealed the reality that many people are forced to make decisions about funerals in a short time without sufficient advance preparation or information. In recent years, there are many situations where decisions regarding funerals must be made in a short period of time. On the other hand, funerals are not something most people experience frequently, leading to situations where they have to face them without fully understanding the breakdown of costs or how to proceed. Against this background, this survey focused not just on viewing the cost differences in funerals as a mere pricing issue, but on the circumstances under which consumers make decisions, clarifying the actual situation. As a result, it was found that about 40% of decisions on funeral homes are made within 3 hours, and about 80% are made without comparison. In addition, a certain number of respondents stated that there was a difference between the initially expected amount and the final payment, highlighting the reality that decisions are being made while sufficient preparation and understanding remain difficult. ■ Survey Summary 1. About 80% decide on a funeral home without comparison, and about 40% make the decision within 3 hours of passing. Decisions on funeral homes are made within 3 hours by about 40% and within half a day by about 70%. The most common reason for not comparing was "lack of time." 2. Regarding the final payment amount, about half answered that it "increased more than expected." The most common reason for the difference was "because items not included in the previously viewed plan were added," and there was also a "gap between the perception of the plan contents seen in flyers or websites beforehand and the reality." 3. Regarding the total amount, 1 in 2.5 people in their 40s and 50s answered that they "proceeded without fully understanding." The total of "Received an explanation but was not confident I fully understood," "Received an explanation but proceeded without fully understanding," and "Was in a state where I could hardly understand the explanation" was 42.3% for those in their 40s, 40.2% for those in their 50s, and 29.1% for those in their 60s and above. Over half (50.7%) of those in their 40s who have been involved in a funeral utilize AI. The most common consultation topic was "administrative procedures" (48.2%). ■ Overview of "The Reality of Decision-Making and Costs in Funerals" Survey Period: April 15, 2026 Survey Method: Internet questionnaire survey Target Respondents: Men and women aged 40 to 80 nationwide who have been involved in a funeral within the past 5 years Number of Respondents: 500 Survey Supervisor: San Holdings, Inc. *Because the response percentages in the graphs are rounded to the first decimal place, the total may not equal 100%. When introducing the survey results, please include the note: [Quoted from San Holdings' awareness survey on "The Reality of Decision-Making and Costs in Funerals"]. When choosing a funeral home, about 80% of people decided without comparing multiple companies. Also, about 40% decided on a funeral home within 3 hours, and when looking at those who decided within half a day, it reached about 70%, showing a tendency for funeral home selection to be made in a very short amount of time. Furthermore, only about 20% of the total compared multiple companies, suggesting a situation where there is no leeway to gather sufficient information or make comparisons. From these results, it can be seen that the selection of a funeral home is often done within a limited time, making sufficient comparison difficult. Also, the most common reason for not actually comparing was "lack of time." In the midst of the sorrow and confusion immediately after losing a precious family member, the reality is that they are forced to choose a funeral home without any time to spare. Behind this, it is thought that when someone passes away in a hospital, there are many cases where they are asked to vacate the hospital room or morgue promptly. Hospitals also have circumstances where they must secure limited space for accepting the next patient or for facility operation reasons, placing bereaved families in a situation where they are easily forced to make decisions in a short time. Regarding the final payment amount compared to what they researched themselves or imagined before getting an estimate from the funeral company, while 36.4% said it "hardly changed," the total of those who said it "increased" reached 47.6%. As for the reasons for the difference in payment amount, "because items not included in the previously viewed plan were added" was the most common at 45.8%, and "gap between the perception of the plan contents seen in flyers or websites beforehand and the reality" was also seen at 29.4%. While people tend to focus on the difference in amount, it is important to grasp the contents and cost structure in advance. Because there are many situations where decisions are forced amidst sudden events, it is considered that organizing information in advance, confirming what is necessary for oneself and one's family, and actually consulting with a funeral home beforehand will lead to decisions that one can be satisfied with. *Total of "Received an explanation but was not confident I fully understood," "Received an explanation but proceeded without fully understanding," and "Was in a state where I could hardly understand the explanation." Regarding the estimate of the final total amount at the time of contract, 25.8% said "Received an explanation but was not confident I fully understood," 5.4% said "Proceeded without fully understanding," and 2.8% said "Hardly understood," which combined amounts to 34.0%. On the other hand, 66.0% answered "Grasped the contents and was in a state to explain it to others" or "Listened to the explanation, understood it, and was able to ask necessary questions," showing that a majority of people understood and were satisfied with the estimate of the final total amount of "about how much they would end up paying" at the time of contract. Looking by age group, the total of "Received an explanation but was not confident I fully understood," "Received an explanation but proceeded without fully understanding," and "Was in a state where I could hardly understand the explanation" was 42.2% for those in their 40s, 40.2% for those in their 50s, and 29.1% for those in their 60s and above. It became clear that 1 in 2.5 people in their 40s and 50s are "proceeding without fully understanding" the total amount. Due to differences in funeral experience and prior knowledge, it can be seen that relatively younger generations are proceeding without fully understanding the contents of the explanation. From these results, it can be seen that regarding the total amount in funerals, there are cases where people proceed to a decision without fully organizing the information even after receiving an explanation. The background is thought to include the mental burden when facing a sudden event and the lack of time to think calmly, suggesting the importance of confirming the overall picture of costs in advance. In pressing situations, it becomes difficult to make decisions both mentally and time-wise. Also, we have seen bereaved families struggling on site many times without knowing what the deceased wanted. For those who think it's okay because it's not right now, we would like you to visit for a prior consultation at least once while you can make calm decisions. San Holdings Group, Koekisha Co., Ltd., First-class Funeral Director, Saori Sakamoto ◆ Column | Increasing Number of People Utilizing "Generative AI" for Funerals and Post-Funeral Procedures A separate survey was also conducted on the utilization status of generative AI (such as ChatGPT) for funerals and post-funeral responses among the 500 people under the same conditions as this survey. Q. Have you ever consulted or asked questions to generative AI (such as ChatGPT) about funerals or post-funeral responses? n=500 22.0% of the total answered that they "utilized" generative AI. By age, those in their 40s reached about half at 50.7%, while those in their 60s and above remained at 11.4%, showing a large gap between generations. Q. For those who have consulted or asked questions to generative AI (such as ChatGPT) about funerals or post-funeral responses. Please tell us all the generative AI tools you have used for funerals or post-funeral responses. n=110 (Multiple answers allowed) The most used AI tool was ChatGPT at 67.3%. This was followed by Gemini at 48.2%. Q. For those who have consulted or asked questions to generative AI (such as ChatGPT) about funerals or post-funeral responses. Please select all that apply to the contents you have questioned or consulted generative AI tools (such as ChatGPT) about so far. n=110 (Multiple answers) In the contents consulted with AI, "administrative procedures (48.2%)" was the most common, showing that it is utilized more for complex post-funeral procedures than the funeral itself. This was followed by "flow and preparation of wake/funeral service (45.5%)" and "plans and costs (36.4%)." Q. For those who have consulted or asked questions to generative AI (such as ChatGPT) about funerals or post-funeral responses. How did you feel when you questioned or consulted generative AI (such as ChatGPT) about end-of-life planning or funeral-related matters? n=110 (Multiple answers) Regarding what they felt using AI, "It was useful for organizing basic knowledge (49.1%)" was the most common, followed by "I was able to gather information casually (42.7%)." There was also a certain number of voices saying "It was difficult to judge whether the information was correct (9.1%)," leaving anxiety about the accuracy of the information. Q. For those who have consulted or asked questions to generative AI (such as ChatGPT) about funerals or post-funeral responses. What impact did researching funerals or post-funeral responses with generative AI (such as ChatGPT) have on your actual response? n=110 (Multiple answers) Regarding the impact on actual responses, AI plays a role in assisting dialogue with funeral homes, such as "I was able to organize what I wanted to confirm before consulting a funeral company (40.9%)" and "It became easier to understand the explanation from the funeral company (40.0%)." "It rather increased my hesitation and anxiety" remained at only 2.7%, indicating that it generally functions effectively as an information organization tool. ■ Company Overview About San Holdings, Inc. The San Holdings Group is a specialized funeral business operator expanding nationwide and listed on the TSE Prime Market. As a leading company in the funeral industry, we have faced people's "ends" head-on for over 90 years. We value the time to send off the deceased with "sincerity," and while staying close to the lives of each senior generation and their families, we want to convey that a funeral is an irreplaceable ceremony that concludes the final chapter of life. We also actively engage in enlightenment regarding life endings, aiming for a future where society as a whole can support the preparation so that individuals and their families can face the end with peace of mind. We will continue to contribute to the realization of a "society where the final moments are enveloped in love and respect" for everyone living in the era of the 100-year lifespan. Company Name: San Holdings, Inc. Tokyo Headquarters: 14F Shin-Aoyama Building West, 1-1-1 Minami-Aoyama, Minato-ku, Tokyo TEL: 03-5770-3301 (Main) FAX: 03-5770-3302 Osaka Headquarters: 4-6-39 Tenjinbashi, Kita-ku, Osaka City TEL: 06-6208-3331 (Main) FAX: 06-6208-3332 Established: October 2, 1944 (Founded August 1932) Capital: 2,568.15 million yen Number of Employees: 54 (Non-consolidated), 1,153 (Consolidated) (As of the end of March 2025) Business Description: Holding company business, real estate business, management outsourcing business Main Banks: Sumitomo Mitsui Banking Corporation, MUFG Bank, Sumitomo Mitsui Trust Bank, Mizuho Bank [San Holdings Group] Holding company business, real estate business, management outsourcing business - San Holdings, Inc. Funeral business and life ending support business - Koekisha Co., Ltd. - Sosen Co., Ltd. - Tarui Co., Ltd. - Kizuna Holdings Co., Ltd. - Kazokusou no Famille Co., Ltd. - Hanakoma Co., Ltd. - Bizenya Co., Ltd. - Coconet Co., Ltd. - Tamanoya Co., Ltd. - Kita-Kanto Gojo Center Co., Ltd. - Kigetsudo Celeo Co., Ltd. Funeral-related business and life ending support business - Excel Support Service Co., Ltd. - Kunika Next Co., Ltd. - Life Forward Co., Ltd. - Kanno Trading Co., Ltd. - WithWedding Co., Ltd. - Fleur Co., Ltd. - Heartline Co., Ltd. https://www.san-hd.co.jp/about/group.html