Are you checking your KiwiSaver balance every day, or even more often? We’ve got some important reasons why it’s good to not check your KiwiSaver balance during a downturn, and to avoid checking it every day.
4. It might make you panic
Most of us have done this in recent months – logged in and seen your balance has fallen. It’s not a good feeling, and it might make you worry or panic unnecessarily.
3. It might make you act on it
Worry and panic isn't great. If you don't need your money soon and change funds after seeing your balance drop, that could be a worse outcome. Pick the right fund for you based on how long you’ll be investing for, and how comfortable you are with seeing ups and downs in your balance, and stick to it. Avoid changing fund types because of a dip in your balance, or because of something you’ve seen online.
2. Get used to ups and downs
Over the time your money’s invested in KiwiSaver, whether that’s five years, or 30+ years there will be dips in the market. For some of us, the recent drop due to the coronavirus outbreak is the first real fall in our balances we’ve had. And the ups and downs will continue for a while yet too. The markets usually always recover, but it can take time. And there will be future drops too, no one knows when. The best thing is to get in the right fund type for you.
1. KiwiSaver is a long-term investment
For most of us, KiwiSaver is a long-term investment, and our money will be invested for 10 or more years. Over the long term, your balance should increase. But there could be ups and downs along the way. If you aren’t using your money for 10 or even 30 years, it’s not particularly helpful to you to check the balance daily.
So, how often should you check your balance?
Once every six months or once a year is a good starting point and guide. You might want to check it more, or less than that. You should definitely check it once a year, when you get your annual statement. But it’s a good idea not to check your balance every day or every week, especially during such volatile times like the coronavirus outbreak. Check every year that you’re in the right fund type for your situation, and set and forget.
Story by Claire Connell, JUNO
Published 25 May 2020
Pie Funds Management Limited is the issuer of the JUNO KiwiSaver Scheme. You can read our Product Disclosure Statement. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. We recommend you speak with an independent financial adviser. All content is correct at time of publication date.