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Super Advice NZ
When Markets Move, Most Kiwis Make This Mistake
If you have checked your KiwiSaver balance recently and felt a flicker of concern, you are not alone. Markets across the globe have been volatile, and KiwiSaver balances have reflected that.
RNZ reported this week that financial commentators are asking a serious question: can KiwiSaver members handle a long investment downturn?
It is a fair question. For nearly two decades, KiwiSaver has existed mostly during a long run of rising markets. Many members have never experienced a sustained downturn.
The most common reaction to seeing a balance drop is to want to do something. Switch funds. Stop contributions. Move to cash.
Often, that is exactly the wrong move.
Timing the Market vs. Time in the Market
The data has been consistent for decades. Investors who try to pick the right moment to move out of growth assets and back in again tend to do worse than those who stay the course.
The reason is simple: the best days in the market often come shortly after the worst days. If you sell when things look bad, you are very likely to miss the recovery.
But there is a difference between staying the course and being on autopilot.
The right question is not “should I panic?” – it is “is my fund still the right fund for my situation and timeframe?”
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Market volatility is a reason to review your setup – not a reason to abandon your plan.
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When a Review Actually Matters
There are moments when a KiwiSaver review is genuinely worth doing:
- Your fund has not been reviewed in more than two years
- Your goals have changed – buying a home, retiring, starting a business
- Your risk tolerance has shifted as you have gotten older
- You are in a default fund and have never actively chosen where your money goes
- Your contribution rate was set when you first started working and has never been revisited
According to the FSC Financial Resilience Index, 70% of New Zealanders worry about money. And 2019 CFFC research found 42% of workers were distracted by financial concerns at work.
If that sounds familiar, a quick review of your KiwiSaver and broader financial setup is one of the simplest ways to feel more in control.
It Is Not Just About KiwiSaver
KiwiSaver is often the starting point, but your financial wellbeing is bigger than one fund.
If your investments are moving and your insurance has not been reviewed in years, there is a good chance your cover no longer matches your life. A new mortgage, a growing family, a change in income or debt – all of these change what protection you actually need.
The FSC’s 2023 Financial Resilience Index found that 39% of New Zealanders could not access $5,000 within a week without going into debt. If that is where you are, the priority is not which fund you are in – it is building a buffer.
Everyone’s starting point is different. That is why a one-size-fits-all answer does not work.
Five Minutes to Check You Are on Track
If you have been putting off a look at your KiwiSaver, your insurance, or your wider financial picture, this is a good moment to take five minutes.
We offer a free, no-obligation chat to look at where you stand. No jargon. No hard sell. Just a straight answer on whether things look right for where you want to go.
Markets will always move. What matters is whether your financial setup is ready for it.
This is general information only and does not take into account your individual circumstances. If you want advice for your specific situation, book a chat with the Super Advice team.
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