What to do when your KiwiSaver or investment balance drops

Noticed a dip in your KiwiSaver or investment balance? It’s never fun to see the numbers go down, but remember, it’s a normal part of investing. Markets move around, and from time to time your balance will move with them.

When this happens, it can feel like you need to act straight away. For most people, though, the best first step is simply to pause. Making big changes in the moment aren’t usually necessary, and sticking with your long‑term plan is often the best way forward.

In this guide, we’ll explain why KiwiSaver and investment balances rise and fall and how you can respond when they do.

What causes your balance to go up and down?

Financial markets naturally move up and down over time. You might hear this movement referred to as market volatility. It’s simply a way of describing how much the value of your investments, including those in your KiwiSaver, move up and down.

When markets are volatile, they’re usually reacting to something, which can cause your account balance to fluctuate in the short term. There are lots of reasons why this happens, including:

Economic factors

Such as changes in interest rates, inflation, industry trends, or how confident people are feeling about spending and investing.

Global events

Such as wars, pandemics, or natural disasters, which can create uncertainty.

Company‑level factors

Such as financial results, major announcements, or changes in leadership or strategy.

For KiwiSaver and other investments, this can mean your balance moves up or down from day to day more than you might expect. While that can feel uncomfortable in the short term, this kind of movement is a normal part of investing and something all long‑term investors experience.

How can you handle market ups and downs?

Don’t panic

When markets fall, it’s natural to feel worried and want to react straight away. But markets have been through ups and downs before, and history shows they tend to recover over time. Acting too quickly can sometimes make things worse.

Switching from a higher‑risk fund to a lower‑risk fund during a downturn can lock in losses, because you’re moving your money when prices are already lower. It can also mean missing out if markets bounce back.

Pausing your contributions can also feel like the safer choice. For people investing long term, though, market dips can be an opportunity. Continuing to invest means you may be buying investment units at lower prices.

That said, making changes isn’t always the wrong decision. What matters most is your own situation, how long you’re investing for, and how comfortable you are with risk.

Focus on your long-term goals

If you have a KiwiSaver account, you’re likely investing for the long term.

Long‑term investing is about staying invested over many years and riding out short‑term ups and downs along the way. Reacting to day‑to‑day market movements can lead to decisions driven by emotion rather than your bigger financial goals.

Taking a long‑term view can help you stay calm, trust your plan, and remember why you’re investing in the first place.

Speak to an adviser

Saving and investing isn’t always straightforward, especially when markets feel uncertain. A financial adviser can help you make sense of what’s happening, review whether your KiwiSaver still suits your situation, and keep your plan on track.

Before making any changes to your KiwiSaver or investment account, it can be a good idea to talk things through with an adviser so you can make decisions that are right for you.

Planning to access funds in your KiwiSaver or investment account soon?

If you’re considering a large lump‑sum withdrawal, it’s especially important to speak with an adviser first. They can help you understand the timing and how taking a lump sum might affect your savings, particularly during periods of market volatility.

Buying your first home

If you’re planning to use funds from your KiwiSaver account for a first-home deposit, a dip in the market may affect how much you are able to withdraw, especially if you’re close to buying.

If markets are volatile and you’re planning a withdrawal, it’s a good idea to speak with an adviser. They can help you understand how current market conditions might affect your balance and what your options are if your balance is lower than expected.

Nearing or in retirement

Whether you’re nearing retirement or already there, many people still have a longer investment timeframe ahead than they expect. That often means there’s time for your balance to recover from market ups and downs.

If you already have a retirement plan in place, it’s usually best to stick with it and avoid making big changes based on short‑term market movements. A well‑thought‑out retirement plan should already include a drawdown strategy that helps smooth the impact of market ups and downs by spreading withdrawals over time, rather than relying on one‑off decisions.

If you don’t yet have a clear plan, this can be a good time to get advice and create one. An adviser can help you structure your KiwiSaver or investment account and set up a drawdown approach that matches your lifestyle, cash‑flow needs, and when you expect to access your savings.

Market ups and downs are a normal part of investing, even though they can feel uncomfortable when they happen. For most people, the key is to stay focused on why you’re investing in the first place, whether that’s retirement, a first home, or long‑term financial security.

If your KiwiSaver or investment balance drops, take a breath, revisit your long‑term goals, and remember that you don’t have to navigate it alone. Support, advice, and reassurance are available if you need them, and having a clear plan in place can make all the difference when markets feel uncertain.

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