My kiwisaver is dropping, what shall I do?
COVID-19 has also had an effect on many peoples Kiwisavers.
You must remember that Kiwisaver Funds are a long term investment and COVID-19 will only be temporary. While your Kiwisaver may have reduced, these are only unrealised losses and the Contributions that you have been making are guaranteed by the Government.
There was a great article on Newhub that explains why this is happening and what to do. The general consensus is to not panic and do not change funds as that will “realise” those losses.
As a general rule of thumb, anyone under 50 years of age should have their Kiwisaver in a growth fund, 50 – 60 years old should have a balanced fund and anyone of 60 should be in a conservative fund. Contact your Kiwisaver provider to find out which one you are in.
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