Gillian Boyes: KiwiSaver, the central pillar of our country's retirement savings system, has been hit with the biggest challenge of its 13-year life, after a long period of sustained high returns and buoyant world sharemarkets.
KiwiSaver was last hit like this in the wake of the Great Financial Crisis in 2008. At that time, average balances were quite low because KiwiSaver was relatively new.
Balances are now generally higher, which means a 10 per cent fall in your KiwiSaver balance is more likely measured in the thousands of dollars, rather than hundreds.
The volatility that prompted the losses people saw in March has been followed by a pretty strong bounce-back in global and local sharemarkets. But we can't say with any certainty how long that will last.
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