A majority of affluent Indian parents are willing to make considerable financial sacrifices to provide their children with an international education. According to a survey, these sacrifices include putting their retirement savings on the backburner and potentially selling their assets.

The survey, conducted as part of HSBC’s Quality of Life Report 2024, polled 1,456 affluent individuals across India.

Big focus on studies abroad

It found that 78 per cent of respondents either have a child studying abroad or are planning for their child to pursue education overseas. Out of this 78 per cent, another 91 per cent said they intend to fund their children’s international education, with top destination countries being the US, UK, and Canada.

However, while Indian parents remain steadfast in their desire to support their children’s educational aspirations, only 53 per cent have an education savings plan in place, leaving a considerable financial gap.

Cost of sending a child to study abroad

The financial burden of an international education is stark. The average current or expected cost for affluent Indian parents stands at $62,364 (approximately Rs 52.4 lakh at the current exchange rate of 83.98). For a typical three-year degree course abroad, this would amount to 48 per cent of their retirement savings.

A four-year degree would deplete a significantly higher 64 per cent of their retirement savings, raising concerns about long-term financial stability.

Priorities and financing plans

Despite these financial strains, Indian parents are clear in their priorities. The survey found that their top financial goals include supporting the family (45 per cent), wealth accumulation for financial security (41 per cent), investing in properties (40 per cent), education savings (40 per cent), and retirement planning (38 per cent).

Not all parents are fully relying on using up their savings, though. Although as many as 27 per cent of respondents said they would consider selling assets to meet these costs, roughly 40 per cent expect their children to take on student loans, while 51 per cent are hopeful for scholarships.

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Indian parents want children to study abroad even if it puts strain on retirement savings: Survey