Gulf News Edufair Dubai: Indian parents tap retirement savings for children's overseas study, says HSBC

A growing number of Indian parents are prioritising international education for their children, even at the cost of their own financial security, according to recent research by HSBC.

The study reveals that nearly 90 per cent of affluent Indian parents are willing to fund overseas studies, with some drawing down as much as 64 per cent of their retirement savings to make it possible.

The global survey, which polled more than 11,200 affluent individuals across 11 countries — including India, the UK, the US, China, and the UAE — highlights the intense commitment many Indian families have toward providing global educational opportunities for their children.

According to the research, 78 per cent of Indian respondents either already have a child studying abroad or hope to send one overseas. Preferred destinations include the United States, United Kingdom, Canada, Australia, and Singapore. As inflation and rising living costs eat into household budgets, funding this dream is becoming increasingly challenging.

To bridge the financial gap, Indian families are adopting a range of strategies. More than half (53 per cent) have dedicated education savings plans, 40 per cent expect their children to take on student loans, and 51 per cent are banking on scholarships. About 27 per cent of parents say they would consider selling personal assets to meet the high costs.

Beyond the monetary burden, parents are also grappling with the logistical and emotional toll of navigating university applications, course selections, visa requirements, and other pre-departure hurdles.

Despite the challenges, the pursuit of international education remains a top priority for many Indian families — driven by aspirations for better career prospects and a higher quality of life for the next generation.

Financial planning

The report underlines the importance of strategic financial planning to mitigate these pressures. “For meeting life goals, financial planning helps protect against future challenges,” said Najeeb Ahmed Busheri, Head of Network and Wealth Distribution Channels, UAE at HSBC. “Financial planning involves developing strategies to manage financial affairs and achieve life objectives. Poor financial planning can have a significant negative impact on one's quality of life.”

“Whether it’s saving for a down payment on a house, planning for retirement, or funding our children’s education, having a clear roadmap can make all the difference,” he added.

Recent research by HSBC further shows that financial planning is more important for quality of life than simply accumulating wealth. “When we take the time to actively manage our finances and protect ourselves and our loved ones against risks, we can create huge benefits to our long-term happiness. With a comprehensive financial plan in place, we can face uncertainty with confidence, knowing that we have prepared for the future,” said Busheri.

The HSBC research suggests that seeking professional advice and building a financial plan can help protect against future losses and positively impact well-being.

“Actively managing our finances and investments, seeking professional guidance, and having a comprehensive retirement plan can help establish a solid foundation for a fulfilling and enjoyable life,” added Busheri.

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