78% Indian Parents Plan to Send Kids Abroad Despite High Costs Impacting Retirement Savings
A recent report by HSBC has revealed a significant trend among Indian parents, with 78% of them planning to send their children to study abroad. Despite the high cost, affluent Indian families are increasingly prioritizing international education for their children, even if it means dipping deep into their retirement savings.
The report highlights that over two-thirds of wealthy Indian parents are willing to bear the expenses of sending their kids abroad for higher education, even though it could take up a substantial 48-64% of their retirement savings over a 3 to 4-year study period. On average, parents spend around $62,364 (approximately Rs.52.3 lakh) on their child’s education overseas.
When asked how they plan to cover this cost, 40% of parents expect their children to take student loans, indicating a growing reliance on debt to fund these aspirations. The HSBC Quality of Life report underscores the financial strain this decision can place on families, as a significant portion of their hard-earned savings is allocated to international education.
With rising tuition fees and living expenses in countries like the USA, UK, and Australia, Indian parents are increasingly having to evaluate the long-term impact of such investments on their retirement plans. Despite the high cost, the trend indicates that Indian parents see international education as a valuable pathway to success for their children, even if it means a substantial impact on their financial security in later years.
The report raises concerns about the balance between ensuring quality education for children and securing financial stability for the future, as more parents navigate the challenge of funding overseas education without jeopardizing their retirement goals.
