02 November 2020

5 tips to help you cope when your KiwiSaver balance heads down

Have you noticed your KiwiSaver balance moving around?  Global happenings like COVID-19, natural disasters and political events create uncertainty which can have an impact on world financial markets, which can then flow through to your KiwiSaver balance.

While it’s natural to feel disappointed if your balance has dropped, KiwiSaver was always designed with this type of market volatility in mind. KiwiSaver is by nature a long term investment – where people contribute over 40 years or more towards their retirement. 

While KiwiSaver balances will move up and down in line with the markets, it’s the performance over the long term that counts.


We’ve put together 5 tips to help you cope when your KiwiSaver balance heads south. 

Read more about market volatility and KiwiSaver

  1. The best preparation for a stormy period is to make sure you’re already in the right fund for your needs and your long-term plans.
  2. You can’t predict when world sharemarkets might rise or fall. Making hasty moves risks crystallising losses.
  3.  If your KiwiSaver balance falls, don't panic! It is supposed to move up and down, over the long term it should keep rising as you keep contributing and prices recover.
  4. Think about your longer term investment plan and when you’re going to need the money – then stick to it!
  5. It's time in the market that counts, not trying to time the markets.


And a bonus tip, think about getting some help! There are plenty of do-it-yourself guides on our website and the Sorted website or talk to your KiwiSaver provider.