New Delhi, September 11 — A recent report reveals a significant trend among affluent Indian parents: a majority are placing their children’s international education ahead of their own retirement planning. According to HSBC’s “Quality of Life Report 2024,” close to 78 percent of wealthy Indian families either aspire to send their children abroad for higher education or already have children studying in foreign universities. Despite this strong commitment, their financial preparedness for this goal is reportedly insufficient.
Rising Costs and Financial Concerns
The HSBC report highlights a growing concern among Indian parents about the rising costs of international education. The study, which surveyed 1,456 affluent Indian respondents, found that the expense of sending a child to study in popular destinations such as the United States and the United Kingdom can consume up to 64 percent of their retirement savings. This financial burden places significant stress on parents, who are increasingly prioritizing their children’s education over their own financial security.
The report underscores that as educational costs continue to escalate, securing adequate funding has become the primary concern for many Indian parents. Despite this challenge, only 53 percent of those surveyed have established an education savings plan to support their children’s overseas studies. Additionally, 40 percent of respondents anticipate that their children will need to take out student loans to cover the costs, while 51 percent are hopeful that scholarships will alleviate some of the financial pressure.
Potential Measures to Address Financial Shortfalls
The study also reveals that some Indian parents are considering drastic measures to fund their children’s education. Approximately 27 percent of respondents indicated they would contemplate selling personal assets to meet the financial demands of international schooling. This highlights the lengths to which some families are willing to go to support their children’s educational aspirations.
In addition to securing financial resources, the study notes that Indian parents face considerable stress in managing various aspects of the international education process. This includes helping their children select the appropriate course and university, as well as ensuring they meet admission criteria for their chosen institutions. The combination of financial pressures and the complexities of the admissions process contributes significantly to the stress experienced by these families.
Financial Priorities and Global Concerns
According to the report, the top financial goals for affluent Indian respondents are diverse. Supporting the family financially emerged as the highest priority, with 45 percent of respondents identifying it as their primary goal. Other significant financial objectives include gaining wealth for financial security (41 percent), investing in properties (40 percent), saving for their children’s education (40 percent), and planning for retirement (38 percent).
On a global scale, the report highlights that affluent individuals share several common concerns. The top five global issues affecting wealthy individuals are the rising cost of living, high inflation rates, physical health problems, increasing healthcare costs, and the challenge of saving enough for a comfortable retirement. These concerns mirror some of the financial pressures faced by Indian parents, further emphasizing the broader context of economic strain impacting families worldwide.
Conclusion
The HSBC Quality of Life Report 2024 provides a revealing snapshot of the financial priorities and challenges faced by affluent Indian parents. As the cost of international education continues to rise, many families are grappling with the difficult decision of balancing their children’s educational aspirations with their own financial security. The report highlights the significant financial and emotional toll associated with funding overseas studies, and it underscores the need for careful planning and support to navigate these challenges effectively.
As Indian families continue to prioritize education as a key component of their children’s future success, it is crucial for them to consider long-term financial strategies that will allow them to achieve their educational goals without compromising their own financial stability.
Related topics:
