COVID-19 and the effect it’s having on my Kiwisaver

COVID-19 and the effect it’s having on my Kiwisaver

MY KIWISAVER IS DROPPING, WHAT SHALL I DO?

COVID-19 has also has 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. https://www.newshub.co.nz/home/money/2020/03/don-t-panic-that-s-the-advice-from-kiwisaver-experts.html 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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