There has been a lot of movement in the market recently which may be worrying KiwiSaver scheme members around the country.
While KiwiSaver is a long-term retirement investment, you will have seen that annual performance is down. So, what do you need to know about what is happening with KiwiSaver?
What do you need to know?
KiwiSaver is an investment. This means that you are an investor and through this retirement scheme, your money is invested into the market. We at Christian KiwiSaver Scheme carefully manage your money in the effort to grow your investment and to minimise losses.
Depending on your situation, you may also be receiving additional contributions from your employer and/or the Government which you generally would not be receiving outside of a KiwiSaver scheme.
Previously, KiwiSaver schemes have had periods of strong positive returns. In recent years, particularly since the COVID pandemic, the market has not performed so well. The thinking in the market is that it is normal to have this sort of rebalancing period, particularly with these types of unprecedented events.
Most KiwiSaver schemes are in the same boat. Schemes are carefully watching the market and are all subject to its performance. KiwiSaver schemes are also tightly regulated by the Financial Markets Authority who enforce rules for the protection of consumers.
What can you do?
- It is important to remember that KiwiSaver is a long-term investment. While KiwiSaver has experienced a turbulent time in this past year, you can see that our 5 years (p.a.) and 10 years (p.a.) investment returns are positive.
- Last quarter we published an article to help you navigate through this potentially confusing time. Our message is very much the same, i.e. that you look at your investment goals and remember why you chose your particular fund rather than making any sudden decisions. You can view that article here.
While the future is always uncertain, the recent performance of the market can be seen as part of the investment experience where we will experience general ups and downs.
Anglican Financial Care (AFC), the fund manager of Christian KiwiSaver Scheme, is an organisation with long-standing experience. Established in 1972, AFC is celebrating 50 years of serving its members this year. We look forward to continuing to serve your KiwiSaver needs.
“I have told you these things, so that in me you may have peace. In this world you will have trouble. But take heart! I have overcome the world.”
John 16:33 (NIV)