Planting the tree: your working years
Every contribution to super, and every dollar you invest, is water and fertiliser. Employer super guarantee (12% from 1 July 2025) is the base. Extra contributions, such as salary sacrifice, help the tree grow faster. Time does the heavy lifting: the earlier the tree goes in, the bigger it gets.
Picking the apples: retirement income
The apples are the income your savings produce: investment earnings, plus a sensible drawdown each year. If you only ever pick apples, the tree keeps producing. If you start sawing off branches (big lump sums) or cutting into the trunk, it produces less every year after.
Weather: markets, inflation and life
Some seasons are dry. Markets fall, prices rise, health changes. A good plan keeps some apples in the cellar (a cash buffer) so you are not forced to sell in a bad season, and spreads the roots across different investments. See diversification basics.
Questions to ask about your tree
- How big does my tree need to be to give the apples I want each year?
- When can I start picking? (Super access generally starts from preservation age, 60.)
- How does the Age Pension fit in as a second tree?
- Who gets the tree when I am gone? See super death benefits.
No jargon, no suits, just a plan you understand. Book a no-obligation chat or read how much super you need.
Quick answers
What is the apple tree approach to retirement?
A plain-English way to think about retirement: grow your savings while working, then live mainly off the income they produce rather than running down the capital too fast.
Does the apple tree mean I never spend my capital?
No. Most people draw some capital too. The point is to do it at a pace you have planned, so the money lasts.
Sources
General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules and thresholds change; check the sources above. Past performance is not a reliable indicator of future performance. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is authorised under Financial Force Pty Ltd AFSL 238337. Shay has been authorised since 18 October 2011.