Indian Parents Prefer Foreign Education For Children Over Their Own Pension Planning: HSBC Survey

Bengaluru: Rising number of Indian parents are keen to send their children for pursuing international education, despite the financial strain it can take on their retirement savings, a HSBC’s Quality of Life Report 2024 said.

Popular destinations for pursuing international studies include the US, UK, Canada, Australia, and Singapore. However, the survey finds out that as the cost of living increased with inflation eating into savings, funding these educational ambitions has become a critical concern for many families.

The report, which surveyed over 11,000 affluent respondents worldwide, highlights that 90% of Indian parents intend to fund their child’s overseas education, with costs sometimes consuming up to 64% of their retirement savings.

“Preparing for a child’s international education can be daunting for families, involving considerable financial commitment and decision-making. But with the right support, parents can focus on their child’s education without putting their financial stability at risk,” the report said.

The report shows that 78% of Indian respondents either have a child studying internationally or aspire to do so.

The survey report finds out that while 53% of Indian respondents have an education savings plan, 40% expect their child to take on student loans, and 51% are hopeful for scholarships.

A significant 27% would even consider selling assets to cover the costs.

Apart from the financial burden, parents must also navigate the complexities of course selection, university admissions, and other pre-departure preparations, adding to their stress, the report said.

The survey also finds a shift in parental preferences with many now considering regional study destinations like Australia and Singapore. Such an intra-regional mobility trend is growing as Southeast Asia becomes an increasingly attractive option due to its lower cost of living and expanding career prospects. The region’s rise in international schools and universities is providing families with more opportunities to explore education options closer to home.