A recent report has highlighted that even though a vast majority of affluent Indian parents — close to 78 per cent — either aspire to send their child overseas to study or already have a child studying in foreign universities, their financial preparedness for the goal is less than satisfactory.

HSBC’s Quality of Life Report 2024 has said an Indian parent tends to prioritise their children’s international education over their own retirement.

It further said that over two million Indian students are expected to pursue foreign studies by 2025.

“As costs continue to rise, funding is the primary concern for parents — the cost of international schooling for a three or four-year degree programme in popular overseas study destinations such as the US, the UK can use up to 64 per cent of Indian parents’ retirement savings,” said the ‘Quality of life’ global study, which surveyed 1,456 well-to-do Indians.

Only 53 per cent of such well-heeled Indian parents have an education-saving plan in place to finance their children’s overseas studies. A total 40 per cent of respondents expect their child to take on student loans, while 51 per cent are hopeful that they will secure scholarships, the report said.

However, 27 per cent said that they would even consider selling their assets to fund their child’s education.

“On top of 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,” the study noted.

As per the study, for Indian respondents, the top financial goals included supporting the family financially (45 per cent), gaining wealth for financial security (41 per cent), investing in properties (40 per cent), education savings for their children (40 per cent) and planning for retirement (38 per cent).

Globally, the top five concerns of affluent individuals are rising cost of living, high inflation, physical health issues, higher healthcare costs and inability to save enough for a comfortable retirement.