Indian parents prefer spending on children's overseas education than retirement plans

As per the HSBC Quality of Life Report 2024, most Indian parents prefer spending on their children's overseas study plans over their retirement plans.

Study Abroad: HSBC Quality of Life Report 2024 surveyed 11,000 affluent global respondents, and it revealed that nearly 90% of parents in India prefer to spend on their children's foreign education instead of spending on their retirement plans despite the fact that overseas education costs more than 64% of their retirement plan.

If we compare from 2022, there is a significant increase in the number of Indian students going to study abroad in 2023. The number stood at 9,07,404 students in 2022 as compared to 1.3 million Indian students in 2023. This number is only going to increase in the coming time, as it is expected that by 2025, more than 2 million Indian students will pursue study abroad. Currently, also, students from India form the largest source of international students abroad after China.

Sandeep Batra, Head of Wealth and Personal Banking, India, HSBC, commented on the findings and 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," as reported by Indian Express.

Rising cost is major concern, said participants

While the number of Indian students studying in abroad is expected to be increasing soon, the rising course of studying abroad is a major cause of concern for the parents. Investing in their children's studies in countries like the UK and the US can take up to 64% of parents' retirement savings.

The report also considered the health-related risks, financial goals, and impact of mental and physical health issues. The main concerns of the affluent parents the physical health issues, high inflation, increasing cost of living, inability to save for a comfortable retirement and increasing cost of health care.

When asked about their top financial goals, 45% of people said that supporting family financially is their top goal, 41% said gaining wealth for financial security, 40% said investing in properties, 40% said education savings for their children, and 38% said planning for retirement.

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