"The best thing to do is sit tight"
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The share market drop over the past week should not be a reason for people to mess with their KiwiSaver funds, according to retirement commissioner Diane Maxwell.
Maxwell explained KiwiSaver balances, like all long-term investments, will go up and down as the market fluctuates. She urges investors to “hang in there” and says that they will ultimately gain in the long run.
Her comments follow the latest market dip as well as KiwiSaver members reportedly asking if they should change funds, switch providers or suspend their contributions.
“KiwiSaver members may see a drop in balances over the next week as the effects of the share market fall ripples through to returns, but they shouldn’t panic,” Maxwell said.
“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. 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,” she added.
