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New Zealanders urged not to panic if KiwiSaver funds take a hit from coronavirus outbreak

New Zealanders shouldn’t panic if the value of their Kiwisaver fund has taken a hit as coronavirus takes a bite out of financial markets around the world.

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But experts say “don’t panic” if the value of your KiwiSaver fund has taken a hit. Source: 1 NEWS

The country’s economy is expected to take at the very least, a short, sharp knock because of Covid-19.

But Sam Stubbs of Simplicity Kiwisaver is telling New Zealanders not to panic about their funds.

“The last big flu crisis we had globally was the Spanish flu of 1918. The American stock market went down 11 per cent when it was happening, a year later it was 30 per cent higher you had the same with SARS in Hong Kong, you had the same with 9/11,” he says.

The economic dip is unlikely to have a long-term impact on Kiwisaver, experts say. But for the people close to retirement who will soon need or want their funds, Mr Stubbs says it’s best to get advice.

“You should still go and get advice about the best thing to do because if you end up selling all of your investments remember if you end up putting them in the bank, you're going to get a very low return on that,” he says.