KiwiSaver: Should I contribute more or less?

If you’ve seen a drop in your KiwiSaver balance because of the coronavirus outbreak, you might be thinking of stopping contributions. But we say it’s an important time to keep contributing your regular amount.

Keep up your contributions

If you’re able to, it’s a good idea to keep contributing the same amount as you always do. That’s because you’ll benefit when the market picks up. Markets will pick up again, but it could take time.

You might want to contribute more

You may have heard that ‘shares are on sale’ right now. Since the market drop, shares in great companies are much cheaper, so investment managers can buy more shares in companies they want to invest in. Good companies previously out of reach could be an option now too.

So, if you put extra money into your KiwiSaver account now, you’ll be taking advantage of those cheaper shares, and this will benefit your balance when the market picks up.

The exception

If you’re in serious financial trouble – maybe you’ve lost your job due to the coronavirus outbreak – it’s a good idea to call your KiwiSaver provider. They can help you with options that suit you.

Published 31 March 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.