Did a financial health check with HSBC and it said I’m in the shit!

[Flashout]

But am I?

Quick info they based their opinion on…

Aged 54, employed full time since I was 21 and have company pension scheme which is part DB and part DC. The transfer value is about £400k.
im divorced, my gross income from all sources including CMS is 5400 average my outgoings are about 4900.
paid off the ex so have a loan of £25k and mortgage is £180k. House is worth about £700 even on a bad day. No other debt or finance. Car is worth about £4k and I paid cash.
£2k in shares and savings. Had more savings but divorce was expensive.

out of a possible 100 points HSBC said I only get 18.

Is it really that bad?

I just did the check and it literally tells you why your score is as it is! Mine is 31, because my mortgage is a third of my pay and I have a lot of outgoings so not a lot of income left to save.

Well apparently I'm 100.
But no debt, some savings, no mortgage and low outgoings.

If only it knew about the pension reality

It doesn't ask for any personal details

It's just a calculator that looks at income, essential spending, savings to cover essential spending - and it doesn't even ask about pensions...

Maybe you need an account then? For me, it identified I was still financially linked to my old flatmate (it named them) and had an old Warehouse card that although had a zero balance and I no longer had the card, the account was still open.

Or perhaps it has changed (this was about 5y ago so quite possibly).

They are two different things I think. A credit score will do the things like look at credit and linked names etc. the finance health check is a very rudimentary thing they offer.

It doesn’t ask you about equity in your home or value in your pension funds which is where all your wealth is.

I got 100, but I save £2k a month and have £40k in liquid investments… but a much bigger mortgage and a much lower pension so my net worth is a lot less than yours. It’ll be because your spending is the majority of your income.

It didn't ask about pensions or equity, I just tried it! It's really about monthly outgoings and income

Just done mine, you can download the score into PDF that gives more info into the score.

Mine is 88/100, it would be higher but I'm stoozing £14k on 0% cards with the cash in 4.8% ISA. I got spending = GOOD, saving = EXCELLENT and borrowing = IMPROVABLE.

Try redoing it and saying you have life insurance, critical illness and a loan!