International post-secondary education remains in demand amongst affluent families in Asia. However, only around half have a savings plan to cover the cost despite it potentially eating up a significant portion of retirement funds, according to an HSBC survey.
Only a little over half (55 percent) of affluent parents in Asia have an education savings plan, according to the «HSBC Global Quality of Life Report 2024». This is despite strong demand for international schooling which can use up to 66 percent of retirement savings in markets like Indonesia or Indonesia and around 20 percent in Hong Kong.
31 percent expect their child to take on student loans while 45 percent are hopeful for scholarships. 22 percent of respondents would even consider selling assets to fund their child’s education.
Top Destinations
Anglo-Saxon countries like the US, UK, Australia and Canada are the most preferred destinations with the cost ranging between $192,000 to $256,000 per child. In addition, Singapore has also become a top choice for affluent families in Asia.
«This trend is due to their close geographic and cultural ties, excellent and relatively affordable education systems and overall quality of life,» said Kai Zhang, head of wealth and personal banking, South Asia, HSBC.
HSBC’s report is based on interviews with 11,5000 mass affluent ($100,000 to $2 million in investable assets) and high net worth respondents ($2 million or more). The respondents were based in 11 markets worldwide including mainland China, Hong Kong, Taiwan, India, Singapore, Malaysia, Indonesia, United Arab Emirates, the UK, US and Mexico.
