KiwiSaver hotline flooded with calls about financial hardship

April 6, 2020

NZ Funds chief investment officer James Grigor spoke to Breakfast amid the coronavirus lockdown.

A new hotline set up to give New Zealanders financial advice about their KiwiSaver funds has been inundated with calls about financial hardship.

NZ Funds chief investment officer James Grigor is warning people not to panic though, assuring the financial markets will bounce back.

Mr Grigor told TVNZ1's Breakfast today there are more than 350 financial advisers around New Zealand.

"We thought 'how can we help New Zealanders in this time of need?' and one way is to set up this hotline, and absolutely overwhelmingly the number one reason why people are calling is financial hardship."

But he advised people if you don't need to touch your KiwiSaver, don't.

Mr Grigor cited other market downfalls, including during the 1918 Spanish flu pandemic where the market doubled even before the pandemic was completely contained.

"If you have got your financial savings in KiwiSaver and you don't need to touch it leave it because financial markets will work its way through the terrible news and then end up growing again and growing your retirement savings."

Mr Grigor said for people who aren't nearing retirement, looking to buy a first home or in need or financial hardship, now was a good time to actually contribute more - buying into New Zealand and international companies for a lot cheaper than they were a few weeks ago.

"While it's difficult to watch your balance go up and down, really the best thing you can do is to just hold fast, not panic and ride through the volatility."

However, Mr Grigor said it was a "nerve-racking time to see financial markets move like they have" for many, especially those who don't have a relationship with their KiwiSaver provider.

For further advice or information, NZ Funds hotline number is 0800 698 884.

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