Have you noticed your KiwiSaver balance jumping around lately? Don’t worry—it’s likely due to something called market volatility. Let’s break it down in an easy-to-understand way and explain why you don’t need to panic.
What Is Market Volatility?
Market volatility is when financial markets get a bit unpredictable. Prices of stocks, bonds, and other investments can swing up and down quickly, and the level of risk feels higher. This often happens during big events, like:
- Rising inflation (when prices for everyday things go up),
- Geopolitical tensions (like conflicts or trade disputes),
- Or economic uncertainties (think slowdowns or policy changes).
When these things happen, global and local markets react, and that can affect your KiwiSaver balance. How much? It depends on your fund type:
- Growth funds (higher risk) might see bigger swings.
- Conservative funds (lower risk) tend to stay steadier.
Should I Be Scared of Losing My KiwiSaver Money?
Nope! It’s very unlikely you’ll lose all your savings. History tells us that markets, even after tough times, usually recover and grow in the long run. Think of it like a rollercoaster—there are dips, but the ride keeps going up over time.
Volatility can feel risky, but it also creates chances to make money. Your KiwiSaver is built for the long haul, so short-term wobbles are just part of the journey.
How Can I Protect My KiwiSaver?
Investing always comes with some risk, but you don’t have to face it alone. Companies like National Capital use smart, data-driven tools to help. Their independent financial advisers look at your unique situation and suggest ways to:
- Lower your risk,
- Make the most of your KiwiSaver fund,
- Plan for the long term, even when markets are bumpy.
Here’s a key tip: If you’ve recently checked your KiwiSaver and your situation hasn’t changed (like your job or goals), the best move might be to do nothing. Ignoring short-term market ups and downs and sticking to your long-term plan is often the smartest choice.
Why Advice Matters
Talking to an experienced financial adviser can make a big difference. They’ve seen market swings before and can help calm your nerves. They’ll remind you that volatility is normal and encourage you to stay focused on your goals. Sometimes, the best action is no action at all—just sticking with a solid plan.
Key Takeaway
Market volatility can make your KiwiSaver balance feel like a yo-yo, but it’s not something to lose sleep over. Markets tend to recover, and with the right plan, you’re set for the future. If you’re unsure, get advice from trusted experts to keep your confidence high and your KiwiSaver on track.
By focusing on the long term and tuning out short-term noise, you’re already making a wise move!