Don’t panic if your KiwiSaver balance goes down

Your KiwiSaver money is invested in the financial markets, so it can go up and down. If your balance has dipped, should you worry?

Try not to panic

There’s a lot of volatility in markets at the moment. The Ukraine/Russia war, inflation, supply and labour challenges, rate hikes, Covid-19 (again) and weak consumer confidence are all contributing. Your KiwiSaver balance might dip in the short term due to these types of events, but try to stay calm.

KiwiSaver is a long-term investment 

Your KiwiSaver money is often invested in shares on the share market, so it is affected by market volatility (ups and downs). When the market rises and falls, your balance can increase or decrease. When it goes up, it’s great. But sometimes it falls, gently and gradually, or sometimes sharply. When your balance dips, it’s usually not a cause for concern. Over the long term, your balance is expected to grow. 

Should I change my fund? 

It’s important your KiwiSaver money is in the right fund. Your fund type (for example, growth, balanced, or conservative) should be right for your risk level. Your risk level is decided by how long you will have your money invested in KiwiSaver, and how comfortable you are with investing. 

Avoid making snap decisions on your fund type based on external factors, like a wobble in the financial markets. A strong investment strategy is ‘time in the market’, rather than timing the market. 

But if watching your money go up and down really worries you, there are options. You can try to get used to the ups and downs. Most people find the longer they’ve been investing, the more comfortable they get. Or you might not be in the right fund for your risk level.   

What does your KiwiSaver provider do when there’s market volatility?

If your KiwiSaver provider is an active manager (meaning real humans are making active decisions about your money), the investment team can increase the cash levels of the fund. That means less of your money is invested in the financial markets, so you won’t get such extreme ups and downs. JUNO’s an active manager, and increasing cash levels is just one of many ways an active manager can keep your hard-earned money safer. The downside, though, is your returns sometimes might not be as high, because there’s not the same level of ‘bounce back’ when the market picks up again.

Still confused? 

If you’re worried, or confused about your fund type, give your KiwiSaver provider a call. They’re there to help you understand, and give you information about your account and your balance.

Information correct as at July 2022. Pie Funds Management Limited is the issuer and manager of the JUNO KiwiSaver Scheme. Click here for our Product Disclosure Statement. Any advice is given by Pie Funds Management Limited, and is general only. It relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees if you act on any advice. As manager of the Scheme we receive monthly fees that are determined by your balance and whether you are 13 years or over. We will benefit financially if you invest in our products. We manage any conflicts of interest via an internal compliance framework designed to ensure we meet our duties to you. For information about the advice we can provide, our duties and complaint process and how disputes can be resolved, visit All content is correct at time of publication date, unless otherwise indicated. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary. Please let us know if you would like a hard copy of this disclosure information.