Retirement Commissioner urges calm over KiwiSaver funds
The sharemarket drop over the past two days should not be a reason for people to mess with their KiwiSaver funds, says Retirement Commissioner Diane Maxwell.
“KiwiSaver members may see a drop in the balances over the next week as the effects of the sharemarket fall ripple through to returns, but they shouldn’t panic,” says Maxwell. “Like all long-term investments, your KiwiSaver balance will go up and down as the market fluctuates, but hang in there and you will gain in the long run.”
The NZX opened to another soft day today after the US markets dropped again overnight. The S&P/NZX50 closed yesterday down 3.64 per cent.
Maxwell heads the Commission for Financial Capability (CFFC) which hears from consumers whenever the market dips, including KiwiSaver members asking if they should change funds, switch providers or suspend their contributions.
“The best thing to do is sit tight, ride out the low patches and know that when the market rises again, so will your balance,” says Maxwell.
“We all get excited by our KiwiSaver balance when we see it in our banking apps; the downside is that we may be watching it too closely. KiwiSaver is a long game that will have bumpy patches, but will pay off in the end and make a huge difference to your retirement.”