I’m self-employed and I know my state pension won’t be enough

I've been self-employed for 20 years. And I know my state pension won't be enough.

That was the opening line of Fernando's first conversation with Quality Finance.

Fernando, 53. Independent architect. Pamplona.

He has spent over two decades billing well as a freelance architect. But during the first 15 years he contributed at the minimum rate. The result: an estimated state pension of less than €800 per month.

He has €580,000 in funds and deposits, two mortgage-free properties, and no structured retirement plan.

His situation when he came to Quality Finance:

• Estimated state pension: less than €800/month gross
• €580,000 in investment funds and deposits
• Two properties (primary residence + commercial premises rented out)
• No structured private pension plan
• Goal: retire at 62 with at least €3,500 net/month

"I've worked all my life. I don't want to reach 65 depending on a miserable pension and having to sell my flat."

What we did together

1. We calculated his real state pension

‍Based on his contribution history as self-employed, we simulated the most likely scenario: between €700 and €850 gross per month at 65. At 62, even less due to early retirement reductions. The gap with his actual needs was over €2,700/month.

2. We designed a private income strategy

‍With €580,000 and rental income from the commercial premises (~€900/month), we built a complementary income plan in three layers:

• Layer 1 — Immediate liquidity (€80,000): short-term fixed income for the first 2-3 years
• Layer 2 — Periodic income (€300,000): mixed funds with semi-annual distribution
• Layer 3 — Growth (€200,000): global equities to preserve purchasing power over 20+ years

3. We optimised the tax treatment of withdrawals

‍Fund redemptions are taxed as capital gains (19-28%), much more favourable than earned income. We designed the optimal annual withdrawal amounts and order to avoid jumping into higher income tax brackets.

4. We planned the management of the commercial premises

‍The rented premises generates income but also tenant risk and maintenance costs. We analysed whether it made more sense to keep it, sell and reinvest, or structure it as a legacy asset for inheritance.

Fernando now has a clear plan to retire at 62 with €3,600 net per month, without selling any property and without depending on an insufficient state pension.

All case details have been modified to protect privacy. Presented for informational purposes only.