James is 43 and earns £84,500 a year. His wife earns nearly £100,000 a year and they have a pre-school-age child. Their home is worth about £600,000 and has an outstanding mortgage of £60,000.
Isa and Sipp invested in funds, pensions, residential property, cash.
Buy new larger home, work for as long as possible, grow Sipp 5% a year, grow Isa 2.5% a year.
“I hope to work for as long as I can – at least until age 65,” says James. “I will receive income of £8,000 a year from that point from a former workplace pension – a final-salary scheme. And from age 67 I will start to receive £8,000 a year from another former workplace pension. These will rise in line with Consumer Price Index (CPI) inflation.