They have confirmed their annual spending will be €27,000.

They have about €62,000 across UK and Spanish bank accounts, and accounting for the £8,400 a year they will be taking from Mrs Shelverton’s Sipp they will exhaust this cash during their fourth year – a year after Mr Shelverton gets access to his Sipp.

In addition, without making any assumptions for growth of their pension funds, the joint €720,500 they have would cover their living costs for more than 26 years.

They have said there is some “fat in the budget”, but they need to reserve some money for unexpected spending, such as medical expenses. Nor has any account been taken for inflation, which is currently rising, or the fact that we are all living longer.

The risk of running out of funds in later life is something they should definitely think about and make provision against.

They will also need to be aware of Spanish wealth taxes and succession rules. Spain, like other countries in Europe, has taxes that do not exist in Britain, including a wealth tax.

Any assets around the world must be declared for the wealth tax if they exceed €2m. Mr and Mrs Shelverton must do so if their wealth does exceed this amount. Overseas assets exceeding €50,000 must also be declared and failure to do so could lead to severe penalties.

Dennis Hall, an adviser at Yellowtail Financial Planning

The good news is that for their state pension the post-Brexit agreement with the EU means that they can receive their payments from Spain and they will rise in line with those in Britain.

In the meantime they need to bridge the gap between now and the state pension age, which looks achievable based on their combined Sipps. However, the personal pensions will be covering the gap before the state pensions start and the shortfall thereafter, and they’ll be relying on them for 35 years or more. They cannot afford many mistakes.

I’m a fan of Vanguard’s low-cost tracker funds, although given the need to draw income in the near future I question the use of the LifeStrategy funds. In these funds there’s a blend of global stocks and global bonds, which provides diversification. However, there’s no way to separate the bonds from the stocks, and should there be a crash in stock markets you cannot choose to sell just the bonds to meet income needs while you wait for the stocks to recover.

My preferred option is to hold a global fund that invests in stocks for long-term growth, a global bond fund for diversification and medium-term income needs if markets fall, and cash to cover at least a year of income. With the current funds, if the stock market falls and you start to draw income, you’ll be selling shares at a loss.

I don’t see any rationale for holding the individual stocks. The amounts are too small to make a significant impact on the portfolio and the results appear to be a bit hit and miss. Overall, the portfolio appears to be around 60pc stocks and 40pc bonds and cash.

That could probably sustain the income levels they’re looking for, but could become strained if they’re hit with significant costs, the loss of a state pension or significant inflationary pressures in the coming years.

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