Over three-fourth of wealthy Indians have sent or are planning to send their kids overseas for education, according to a survey.
The survey of 1,456 Indians, having investable surplus between Rs 84 lakh (USD 100,000) and nearly Rs 17 crore (USD 2 million), conducted in March found a strong urge for overseas education with 78% of the respondents saying they are keen on a foreign education for their children.
The investable surplus is the amount set aside for investment from overall net worth.
Top Education Destination
The Global Quality of Life 2024 survey commissioned by foreign lender HSBC said the United States is the top overseas destination for Indians, followed by the United Kingdom, Canada. Australia and Singapore.
Ready To Face Financial Strains
So strong is the urge for foreign education for the child that the parents are willing to suffer financial strains as well, the survey said, pointing out that the investment in education may come at the sacrifice of retirement savings.
The expected or actual annual cost of overseas education works out at USD 62,364, and may use up to 64% of parents’ retirement savings, the survey added.
Parents resort to dipping into general savings, taking loans and selling assets to fund the overseas education, the survey said.
The quality of overseas education tops the list of the primary reasons for considering overseas education, followed closely by the possibility to specialise in an area, the survey said.
The survey said that financial concerns are the biggest worry for parents when their kid flies out for education, and followed by others like social or mental concerns and physical or health concerns.
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