Markets have been unpredictable lately, and you’ve probably noticed your KiwiSaver balance going down, which may have you wondering what to do next. Should you stay put, or make a change? The answer really depends on your situation.
- Why Are Markets So Unstable?
Lately, markets have been swinging up and down due to:
Tariff escalations – Trade tensions between major economies are creating uncertainty and shaking investor confidence.
Interest rate concerns – Changes in central bank policies are influencing market stability and economic outlook.
Market sentiment – Uncertainty often leads to heightened reactions, such as exaggerated buying or selling behaviour, increasing volatility across investments.
- KiwiSaver & Market Swings: Should You Worry?
Not everyone needs to react the same way. Here’s a simple way to figure out your next steps.
- Stay Calm If…
You have 10+ years until retirement – Markets go up and down, but over time, they tend to recover.
You’re in a growth or balanced fund on purpose – These funds are designed to have ups and downs but often provide better long-term returns.
You feel nervous but don’t need the money soon – Making decisions based on fear can lead to losses.
- Take Action If…
You’re close to retirement or plan to buy a property with KiwiSaver – If you’ll need your KiwiSaver money soon, check that your fund matches your timeline.
You’re in the wrong fund for your comfort level – If big drops in value stress you out, it might be time to review your risk level.
Your financial situation has changed – If you need access to your KiwiSaver earlier than expected to purchase a first home or due to financial hardship – explore your options.
- What Should You Do Now?
Check your KiwiSaver fund – Make sure it suits your risk tolerance and future plans.
Don’t react emotionally – Market drops can be unsettling, but staying calm in the chaos, and making decisions based on your overall goals often leads to better outcomes.
Seek expert advice – If you’re unsure about what to do, talking to a financial adviser can help you make smart and informed choices. Our team of advisers is here to guide you through any necessary adjustments.
- The Bottom Line
Market ups and downs are a natural part of investing, and for most KiwiSaver members, staying the course is the best strategy. However, if you’re nearing retirement or feel your current fund no longer aligns with your goals, a small adjustment may be necessary. The key is to focus on the long term goals and avoid making rushed decisions driven by short-term panic.
- Take the Next Step
Want peace of mind knowing your KiwiSaver is optimised? Schedule a review with our KiwiSaver adviser today.
Plus, when you book a review, you’ll go in the draw to WIN* a week of dinners on us!
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