The potential impact of the tariffs proposed by US President Donald Trump has shaken the share markets to its core. Last Monday, the NZX plunged steeper than it has since March 2020. Markets in the US also braced for a rough start of the week of trading.
KiwiSaver members were almost immediately impacted by the tariffs, with many seeing their balance drop by thousands.
Younger Kiwis who are saving for retirement many decades away won’t necessarily be concerned. However, for Kiwis who are gearing up to withdraw their KiwiSaver balance to purchase their first home, or begin their retirement years, the loss in funds is very real.
There have been quite a few comments of concerns from first-time home buyers, according to a mortgage advisor with Loan Market, Karen Tatterson.
Head of Link Advisory, Glen McLeod, encourages “anyone who hasn't sought advice about their KiwiSaver fund to do so - particularly if they're planning to use it towards a first home deposit.”
In this current volatile market, it’s important that you are in the right fund for your goals. If you are concerned about your KiwiSaver fund, there are a few things you can do.
Speak to an Expert
These are uncertain times! It’s a good idea to speak with an expert if you have a concern about your KiwiSaver. Here at Money Compare, we have partnered with the National Capital. These KiwiSaver experts can help you by providing free, personal KiwiSaver advice, and help you find the right solution for your goals and needs. Be sure to have a chat with them before you make any decision or change to your KiwiSaver fund!
Compare your Options
Money Compare makes it easy and quick to compare KiwiSaver providers and funds. If you need your money soon, a conservative fund might be best for you. But if you have time to see where the markets go, and before you need to withdraw your funds, you might be more suited to a growth or aggressive fund. Compare your options with an expert at National Capital to find the right investment fund for your needs.
Lock Down your Deposit
If you’re planning to buy a home very soon, it might be worthwhile considering switching to a cash fund so you can determine exactly how much you have available to put towards your deposit.
Sam Stubbs, Simplicity KiwiSaver founder, said, “Who knows what financial markets will do in the short term? They can go up as much as they can go down. The most important thing is to make the right decision, to be in the right fund. If you end up crystallising some loss, that's always a shame of course and no one wants that to happen but the most important thing at any point in time is to be in the right fund for you.”
Remember, the best thing to do is to chat to an expert. Our friends at National Capital can help compare the funds and options available to you so that you can make a fully informed choice and one that aligns best with your goals.
