NEW DELHI: A growing number of Indian parents are sending their children to study overseas potentially compromising their financial futures to fund their children’s international education, HSBC’s latest Quality of Life Report 2024 reveals.

The Quality of Life report, based on feedback from over 11,000 respondents across 11 global markets, reveals key concerns regarding rising living costs. A significant 68 per cent of participants express worry about the increasing cost of living, while 61 per cent are concerned about inflation eroding their savings. These financial pressures are impacting life plans, particularly those related to overseas education. Many respondents highlight challenges with managing anticipated or actual expenses for studying abroad, along with difficulties encountered during the planning and pre-departure stages of the process.

Ninety per cent of the respondent say they intend to fund their child’s education overseas, despite costs representing up to 64 per cent of required retirement savings for Indian parents.

As many as 78 per cent of India respondents either aspire to send their child overseas for study, or already have a child studying internationally.

US, UK, Canada, Australia and Singapore are the top five study destinations for Indian students, driven by the increasing intra-regional mobility.

By 2025, over two million Indian students are expected to study abroad, but rising costs are a major concern. Funding for education in countries like the US and UK can consume up to 64 per cent of parents’ retirement savings. Only 53 per cent of Indian parents have an education savings plan, while 40 per cent expect their children to take loans, 51 per cent hope for scholarships, and 27 per cent would consider selling assets to cover the expenses.

In addition to securing the required funding, juggling multiple tasks, such as helping their child select the right course and university and ensuring they meet the admission criteria for the desired university, significantly contribute to the stress levels of Indian parents.

Commenting on the research findings, Sandeep Batra, Head of Wealth and Personal Banking, India, HSBC, said: “Preparing for a child’s international education can be daunting for families, involving significant financial investment and decision-making. Support services can help families manage practicalities and ensure a smoother transition. With the right resources, parents can focus on their child’s education without compromising their financial stability.”

Besides child’s overseas education cost, the Quality of Life study also looked at financial goals, health-related risks, including rising healthcare costs and the impact of physical and mental health issues. The top five concerns of the affluent individuals globally are rising cost of living, high inflation, physical health issues, higher healthcare cost and inability to save enough for a comfortable retirement. These concerns are reflected in the financial priorities of India’s affluent. Indian respondents ranked ‘supporting family financially’ (45%), ‘gaining wealth for financial security’ (41%), ‘investing in properties’ (40%), education savings for their children (40%) and ‘planning for retirement’ (38%) as their top financial goals.

Agencies

Agencies