Indian Families Sacrifice 60% Retirement Savings for Children’s Foreign Education, says IIM Alumnus, Sparks Online Discussion
Indian Families Sacrifice 60% Retirement Savings for Children's Foreign Education, says IIM Alumnus, Sparks Online Discussion
A viral LinkedIn post has stirred a debate on the financial strain Indian families face when funding their children’s education abroad. Aviral Bhatnagar, founder and managing partner of AJVC and an alumnus of IIM Ahmedabad, expressed his concern over the rising cost of overseas education. He said that Indian families, particularly the affluent ones, are using a significant portion of their retirement savings to support that children’s foreign education.
“Indians are spending more than 60% of their retirement savings on their child’s foreign education. 50L+ spent is a challenge for affluent Indians, who would make the top 0.5% of the country. Not home buying, but education is the biggest worry. Education is no more affordable,” Bhatnagar wrote in his post.
His remarks Spark and online conversation, with many social media users weighing in on the issue. Wilson agreed with the increasing financial burden, others question the value of a foreign degree. One user commented “pending more than half of one’s net worth has become a norm. But is it worth it? Many students are driven by fascination with foreign lands and the western lifestyle, which may not live up to expectations.”
Another user echoed the sentiment, highlighting the hype around getting prestigious degrees from abroad. “The hype behind a lavish degree needs to be controlled. Education should be about knowledge, not status,” they added.
Some commenters raised the issue of return on investment, a factor that was once critical in evaluating education. “The bigger issue isn’t just the affordability but whether the return on investment is still worth it. Education used to be measured by the knowledge and skills gained, but now, it’s more about brand names and perceived value.”
The financial pressure on parents, especially those with high aspirations for their children’s education, continues to grow. Some believe the solution lies in strengthening India’s education system to reduce dependence on foreign universities. “The real answer is building robust academic ecosystems in India,” one user suggested , adding that parents wouldn’t have to dip into their retirement funds if local institutions offered competitive opportunities.
Bhatnagar’s post has not only ignited a conversation about the costs of foreign education but has also raised questions about the priorities and financial planning of Indian families. As another user wisely remarked, “Fund your child’s education, but not at the cost of your own future. A balanced financial strategy can ensure both generations thrive.”
