Keeping Calm About Your KiwiSaver Annual Statement

You might have noticed that your KiwiSaver annual statement is looking a bit…. sad. It's important to keep in mind the basic investment principles and how they relate to your goals for the future as we navigate the current economic uncertainty together. Keep in mind that investment is more about the long view and future growth than it is about short-term swings. We've included some key points about market trends, planning tools, and understanding projections below.

1. The nature of markets
Let's start by keeping in mind a crucial investment principle: markets fluctuate. They always behaved in this way. Peaks and troughs, bull markets and bear markets, will always exist. But history has taught us that markets generally trend higher over an extended period of time. 

2. Markets over the past 12 months
Over the last year, you may have noticed some volatility in the US and NZ stock markets. This is partially due to the pressure that increasing borrowing rates have put on the values of growth-oriented businesses. Central banks have been aggressively trying to regain control as inflation has been spiralling out of control. We suggest reading this Market Commentary Article if you want to learn more about these happenings.

Although these fluctuations could appear concerning, remember that our team is actively managing investments to navigate these conditions. We're focusing on companies that can benefit from or are less exposed to the economic environment.

3. Being aware of your risk tolerance
It's critical to understand your level of volatility tolerance and to match it with your investing goals. This is where our GoalsGetter tool can help. GoalsGetter could help you in selecting the best investing plan by taking into account elements like your financial objectives, your investment horizon, and your degree of tolerance with risk. 

4. Projections and Assumptions for KiwiSaver
Your projected future savings are included in your KiwiSaver statement. But keep in mind that this projection is based on some assumptions that are defined in the legislation. The one number you see on your annual statement is  provided to give you a general sense of how much money you could potentially save in the future. Consider using GoalsGetter for a more thorough look, since it will provide a wider variety of possible outcomes depending on various circumstances.

Remember that the key is to stay the course and keep your long-term objectives in mind since investing is a long-term commitment. There may be ups and downs along the road. Every step of the journey, we're here to support you.