**Cost of overseas study could deplete retirement savings by up to two-thirds**
**Just half of affluent parents in Asia have a savings plan for education needs**
Survey reveals financial impact of study abroad on families
A growing number of affluent Asian parents are prioritising international education as a significant investment in their families, but not without substantial financial strains, says HSBC Global Quality of Life Report 2024.
In Singapore, competitive exposure, suitability for areas of specialisation and fostering independence are key reasons for considering overseas education.
The survey, which interviewed about 11,500 affluent in 11 markets worldwide, highlights that a three- or four-year degree program in popular overseas study destinations – the US, UK, Australia and Canada – can cost between USD192,000 to USD256,000 per child. The cost of international schooling can use up to 66% of parents’ retirement savings in markets like India and Indonesia and up to 30%1 in Singapore.
Only half of affluent families have a plan in place
The survey also shows that only 51% of affluent parents in Singapore have an education savings plan, which helps mitigate the impact on their retirement funds. Nearly a third (32%) of Singaporean parents expect their child to take on student loans, 36% are hopeful for scholarships and 26% would even consider selling 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 Asian parents.
Financial concerns are top of mind for Singaporeans even when children are overseas
While Singaporean parents have concerns about different aspects of their child’s wellbeing overseas, financial concerns (96%) are high on their minds, compared to social or mental concerns (77%) and physical or health concerns (75%). Maintaining an emergency fund for unexpected costs (44%), keeping safe from financial scams (38%), and the ability to manage/budget daily expenses (37%), and are their top three financial concerns.
Singapore as a prime destination for international education
Singapore also stands as an attractive destination for overseas residents to send their children for education, with its world-class institutions and safe, multicultural environment. It ranks as a top choice amongst Indonesians and is among the top five choices for families in China, India, Malaysia and Taiwan.
Alice Fok, Head of Customer Propositions and Marketing, HSBC Singapore, said: “International education is not just about academic excellence; it’s also about gaining diverse perspectives and developing essential life skills such as independence and resilience. Parents and students seek more than basic banking services—they are also looking for comprehensive support for overseas education financial planning, relocation, frequent travel, housing, easy and inexpensive money transfers, and advice on wellbeing and future employment opportunities.
Despite the rising costs of overseas education, over half of affluent families in Asia are planning or have already sent their children to study abroad. While China and India remain the largest international student populations, an increasing number of young people in Southeast Asia are following suit. Beyond traditional Western destinations, Singapore and Australia are becoming top choices for international education among affluent Asian families due to their close geographic and cultural ties, excellent and relatively affordable education systems, and overall quality of life.”
1 Calculation based on an annual education cost of $72,395 over 4 years, totaling $289,580. This amount is 29.55% of the average retirement saving amount of $980,000 in Singapore.
Media contacts
Carina Koh carina.koh@hsbc.com.sg
Chantal Samonte chantal.samonte@hsbc.com.sg
Note to editors
About HSBC Global Quality of Life Report 2024
In March 2024, we interviewed about 11,500 mass affluent (investable asset USD100K – USD 2M) and HNW (investable asset of USD 2M+) respondents from 11 markets worldwide to understand the interest in sending their children abroad for education. The survey explored the anticipated or actual expenses of overseas education, and identified the main challenges encountered in planning for such studies. The markets surveyed include mainland China, Hong Kong, Taiwan, India, Singapore, Malaysia, Indonesia, United Arab Emirates, the United Kingdom, United States and Mexico.
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