Accurate risk profiling is the “foundation of good advice”, the Financial Conduct Authority’s head of investment platforms Kate Tuckley has insisted.

She said moving from accumulation to decumulation is likely to change a customer’s attitude to risk, so this should be reassessed.

“Advisers should not assume that a risk profile remains the same, either when moving into decumulation or from previous advice meetings,” she added.

She made the comments during a keynote speech at Money Marketing Interactive in Leeds yesterday (24 October).

“A key risk is capacity for loss – the ability to absorb losses in retirement, which is critical given the lower future earning potential.

“Many customers may have been able to recover losses during their working years, but this changes in retirement.”

She cited the FCA’s thematic review of retirement income advice, which found that some advisers’ files did not show that capacity for loss had been assessed, or where it had been assessed.

“Clear consideration of this is crucial to demonstrate the suitability of advice,” she said.

“Cash flow modelling (CFM) tools can be used for capacity for loss assessments. However, firms need to assess both attitude to risk and capacity for loss consistently.

“Tools such as standard questionnaires can be useful, but you should be aware of their limitations, especially when the language or questions are not tailored to decumulation, which can lead to incorrect profiling.

“Whatever approach is used, firms must demonstrate that their methods are suitable for retirement income advice.”

Pension freedoms came into effect in 2015, giving consumers more choice and less prescription in how they meet their retirement income needs.

“They can take as much or as little as they like, or even fully cash out if they choose,” said Tuckley.

“As you know, there’s no longer a requirement to buy an annuity, and drawdown is no longer just for the wealthy.

“However,” she warned, “more choice brings more complexity, not just for consumers but also for advisers.

“Most consumers have moved away from guaranteed income for life and keep their pension savings invested, which presents a big challenge for advisers.”

She said advisers need to help consumers manage ongoing risks and make complex decisions about meeting their income needs sustainably.

The FCA is following up on the thematic review and is “completing further work” on retirement income advice, which Tuckley said will continue to be a “priority” in its strategy.

“We want to explore this in more depth to understand how firms are responding to our report,” she said.

The regulator aims to publish further findings in the first quarter of 2025.

THOUSANDS of households have named the date they are planning on turning their heating ahead of winter.

But, wait just a few days after this date and you could save yourself almost £100.

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A study of 2,000 homeowners with central heating found that three quarters plan on waiting until October 31 to turn their radiators on.

But, you could actually save yourself £84 if you waited just a week longer and turned it on on November 7.

That’s based on a household using a 24kW gas boiler for eight hours a day for seven days straight.

Of course, you could save more or less than this based on your usage, but it shows how delaying by just a week could be well worth it.

The study, carried out by utilita Energy also found that despite not having done so yet, 52% are looking forward to warming up their homes next week.

To help them refrain from switching on their boiler, 60% have been layering up, while 24% have resorted to electric blankets.

But even throughout the coldest months, 57% claim they will only put the heating on ‘for an hour or two’ to minimise costs. 

What’s more, 45% plan on using an electric heater as well as their main central heating this winter, with 34% assuming it’s a cheaper option.

And 15% plan to completely replace the gas central heating with a portable electric heater – despite it costing three to four times more per hour, Utilita energy efficiency experts revealed.

A spokesperson for the energy supplier, which commissioned the research, said: “The first time you turn on the heating in winter marks the true arrival of the colder months – filling your home with warmth and comfort. 

“We hope this important heating behaviour study will help people to realise the false economy of using a portable electric heater to subsidise or replace gas central heating, and afford budgeting households as much as 75% more heat hours this winter.”

The study also found half of households claim to be confident in working out the cost of an electric heater versus gas central heating.

According to the OnePoll.com data, 59% financially prepare for the rise in energy spend when it reaches the colder months, and the heating needs to come on. 

Although 76% admit they will reach for the thermostat at the first sign of feeling uncomfortable or cold and 27% give into requests from other household members.

More than half (54%) will be prompted by a drop in the outside temperature, with it reaching an average of nine degrees Celsius before considering igniting up the boiler.

The living room is typically the room that gets heated up (33%), but 26% choose to turn the heating on throughout the entire house.

The Utilita Energy spokesperson added: “When comparing electric heaters to central heating, it’s important to consider both cost and comfort.

 “While electric heaters can offer quick, localised warmth and are ideal for heating individual rooms, central heating provides consistent, zonal heating that’s far better for those on a budget.”

How to save money on your heating

There are countless ways you can save money on your heating bill this winter.

Blocking draughts in your home can easily save you £40 a year, according to the Energy Saving Trust.

Draught excluders typically cost around £20 to £40, but you can also use your own items laying about the house.

You can use radiator foil, which you put behind the appliances to reflect heat back into the room too.

You can get a roll of the handy stuff in Screwfix for just £7.51.

Heat activated fans can be placed on wood burners and even certain types of gas fire to throw heat into the main part of the room too.

You can pick these up from the likes of B&Q for as little as £15.

What energy bill help is available?

There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.

If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.

This involves paying off what you owe in instalments over a set period.

If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.

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Several energy firms have grant schemes available to customers struggling to cover their bills.

But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.

British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.

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You don’t need to be a British Gas customer to apply for the second fund.

EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.

Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).

The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.

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Get in touch with your energy firm to see if you can apply.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

It’s no secret that tech stocks have been powering the market gains over the past few years, and software stocks were among the biggest drivers of this growth.

Multiple factors are propelling the software industry forward, such as the rapid advancement of AI technology, high demand for IT solutions, and the ongoing expansion of the global digital economy.

Wedbush tech expert Daniel Ives has been watching the tech industry, and his take on it points to continued strength supported by AI and cloud expansion.

“Solid enterprise spending, digital advertising rebound, and the AI Revolution will drive tech stocks higher into year-end in our view,” Ives opined. “We believe 70% of global workloads will be on the cloud by the end of 2025, up from less than 50% today.”

Keeping that in mind, Ives goes on to add that the time has come to hit buy on two software stocks. They may not be household names, but according to the TipRanks data, both stocks are Buy-rated – and Ives sees significantly more upside to each than the consensus on the Street. Let’s take a closer look.

Couchbase (BASE)

We’ll start with Couchbase, a modern database platform provider that offers users and developers everything they need to support a wide range of applications – from cloud, to edge, to AI. Couchbase bills itself as a one-stop-shop for data developers and architects, making its services available through its powerful database-as-a-service platform, Capella. Organizations using the service can quickly create applications and services that deliver premium customer experiences, giving top-end performance at affordable prices.

The Capella platform brings the popular as-a-service subscription model to the database industry. The company can support database services for a wide range of AI applications, including the latest gen-AI tech, as well as database search, mobile access, and analytic functions. Customers can also choose self-managed services through Couchbase’s servers, with on-premises management for both multicloud and community apps.

Couchbase’s database service has found success in a wide range of fields, including the gaming, healthcare, entertainment, retail, travel, and utility sectors. The company’s customer base includes such major names as Verizon, UPS, Walmart, Cisco, Comcast, GE, and PayPal.

Turning to the financial results, we see that Couchbase reported its fiscal 2Q25 figures at the start of last month. The top line of $51.6 million was up almost 20% year-over-year and came in just over the forecast, beating expectations by nearly a half-million dollars. At the bottom line, the company ran a net loss of 6 cents per share in non-GAAP measures, but that was 3 cents per share better than had been anticipated.

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Analyst Daniel Ives likes what he sees in this database software firm. The tech expert runs through several factors that should attract investors to this stock, writing, “The company sees strength across net new logos while the launch of its new products will reaccelerate its growth over the coming quarters… Couchbase estimates their TAM to grow to ~$150 billion by 2028 with high performance and scalable modern applications driving the market with AI accelerating further opportunity for high-performance applications as the company is aligned to meet demand for growing DBMS market sub-segments across cloud and on-premise environments.”

Looking ahead, Ives goes on to explain how the Capella platform has potential to boost Couchbase’s performance: “Although still early in terms of its contribution to revenues or ARR, the company noted that it plans to disclose Capella metrics going forward with Capella acting as a ‘game changer’ for BASE with easy adoption or deployment compared to alternative customer managed offerings while helping reduce adoption friction leading to an acceleration in its net new customer adds, some driven by Capella, and existing customers with on-prem products migrating and expanding on Capella.”

Along with a recent upgrade from Neutral to Outperform (i.e. Buy), Ives has a $26 price target on BASE shares, suggesting a one-year gain of 60%. (To watch Ives’ track record, click here)

Overall, Couchbase has a Moderate Buy consensus rating from the Street, based on 13 reviews that break down to 10 Buys, 2 Holds, and 1 Sell. The stock is priced at $16.25 and its $22.62 average target price implies a gain of 39% in the coming year. (See Couchbase stock forecast)

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Dynatrace (DT)

Next up is Dynatrace, a $16 billion large-cap player in the software field. Dynatrace offers its customers the latest in AI-powered, cloud-based data management technology. The company’s platform supports intelligent automation that puts network management, cloud monitoring, and data analytics to work, in one place, for a unified mission. Dynatrace’s platform can be applied to almost any aspect of the tech and business worlds, allowing its users to tap into AI-powered app automation, business analytics, digital security, infrastructure monitoring, and microservices.

By the numbers, Dynatrace has an impressive business footprint. The company boasts more than 4,000 subscription customers, generating approximately $1.5 billion in annual recurring revenue. An impressive 95% of the company’s top line comes from its subscription services, and the company has a gross retention rate in the mid-90% range, indicating a high level of customer satisfaction. Dynatrace can count some big names among its customers, including Dell Technologies, Air Canada, and the government of Australia.

This past summer, Dynatrace released its financial results for its fiscal 1Q25 (June quarter). The top and bottom lines for the quarter both came in well above the forecasts – revenue, at $399 million, was up almost 20% year-over-year and was $6.56 million better than anticipated; the non-GAAP earnings per share, of $0.33, was four cents per share over expectations.

Drilling down, the company’s headline results on subscription business bode well for the future. Total subscription revenue was $382 million for the quarter, for a 21% y/y gain, and the annual recurring revenue (ARR) hit $1.541 billion, up 19% from the prior-year period.

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This company’s use of AI and its strategy of courting large-scale customers caught Ives’ eye, and the analyst writes of it, “Dynatrace is a leader in the Observability space with an expanding portfolio, and long runway for growth with a unique combination of growth and profitability and has the highest operating margins in the space. The company’s focus on large enterprise customers results in higher ARPU metrics vs. its peers as the company’s technology and competitive positioning is positive as it is one of few vendors in the space that supports a hybrid deployment model.”

Also here the Wedbush analyst recently upgraded his rating from Neutral to Outperform (i.e. Buy) while his bumped-up price target of $67 (up from $55), implies a one-year upside potential of 26%.

Looking at the Street consensus, we find that Dynatrace has a Strong Buy rating, based on 20 recent reviews that favor Buy over Hold by 18 to 2. The shares have a current trading price of $53.25 and the average target price of $60.06 suggests that DT will gain 13% by this time next year. (See Dynatrace stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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