'Most students motivated by fancy degree and western lifestyle': Netizens react after IIM alumnus says Indians spend 60% retirement money on child's foreign education

An alumnus of the Indian Institute of Management (IIM) has sparked a heated debate online after claiming that many Indian parents are spending a significant portion of their retirement savings on their children's foreign education. The post, shared on social media, has ignited discussions about the rising cost of education, the pressures faced by parents, and the importance of financial planning for retirement.

With the rising costs of studying abroad, more parents are setting aside a large part of their income for this, said Aviral Bhatnagar, IIM-A alumnus and founder of AJVC investment firm. In a LinkedIn post, Bhatnagar pointed out that many families are using over half of their retirement savings to fund their children's dreams of studying overseas. He added that most families in the country invest a big portion of their future savings to send their kids to foreign universities.

“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 per cent of the country. Not home buying, but education is the biggest worry. Education no more affordable," Bhatnagar, who had graduated from IIT Bombay, noted in his post.

His post sparked a debate on LinkedIn, with many users sharing their views. One commented, "While foreign education is expensive, the bigger issue is how we perceive its value. It's not just about affording it, but whether the return on investment is worth it—something that used to be key when evaluating education."

Another user thinks Indians are overly focused on "getting a fancy degree," which is why "spending more than half of one's net worth has become common." The user added that most students going abroad are "motivated by a fascination with foreign countries and the western lifestyle."

One user pointed out that studying at private institutions in India can be just as expensive as studying abroad. They also claimed that many students going overseas "fail to get into their preferred courses" in India. The LinkedIn post has received over 1,500 reactions since it was shared.