What’s happening in financial markets and what it means for your KiwiSaver
Last updated 2 March 2026
Financial markets in New Zealand and around the world are currently experiencing increased volatility.
The recent US–Israeli strikes on Iran, and the retaliation across the region, have disrupted shipping, air travel and oil supply. Rising energy prices can influence how shares, bonds and currencies trade, so you may see your investments - including your KiwiSaver balance - move up and down in the coming days or weeks.
Many investors are asking:
- Why are markets going up and down?
- Should I change my KiwiSaver fund?
- Is now a bad time to invest?
Why are markets volatile right now?
Global sharemarkets are moving sharply due to several factors, including:
Escalating conflict in Iran, with disrupted shipping, air travel and oil supply
Tariffs on international trade
Recent economic data releases
Comments and interest rate decisions from central banks
Company earnings results that have fallen short of expectations]
Ongoing geopolitical events, including conflicts in Ukraine and the Middle East
Policy responses from the United States and European countries
Is market volatility normal?
Yes. Market volatility is a normal part of long-term investing.
Financial markets move in cycles. While markets can decline in the short term, history shows they have recovered and grown over longer timeframes.
Short-term downturns can feel uncomfortable, but they are not unusual. Periods of volatility are part of how markets function.
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Should you change your KiwiSaver fund during a downturn?
Making changes during a market downturn can sometimes do more harm than good.
If you switch funds or withdraw investments when markets are down, you may:
Lock in losses
Miss out on the rebound when markets recover
Reduce your long-term returns
Timing the market is extremely difficult. Missing just a few of the best-performing days can significantly affect long-term performance.
For most investors who are not planning to withdraw their KiwiSaver soon, staying invested is often the better strategy.
Why staying invested matters
Long-term investing is designed to ride through market ups and downs.
A diversified investment strategy spreads risk across different assets and regions. This helps reduce the impact of volatility over time.
Instead of reacting to headlines, it’s more effective to focus on:
Your long-term retirement goals
Your investment timeframe
Your risk tolerance
Whether your current fund still matches your situation
What should you do during market volatility?
Here are three practical steps:
1. Stick to your long-term plan
If retirement is still years away, short-term fluctuations are less likely to affect your final outcome.
2. Avoid fear-based decisions
Emotional reactions during market downturns can lead to decisions that may not align with your financial goals.
3. Talk to a Generate adviser
If you’re unsure whether your KiwiSaver fund is right for you, our team of advisers can help you review your strategy and ensure it suits your timeframe and comfort with risk.
Final thoughts
Market fluctuations can feel unsettling, but they are a normal part of investing.
Staying focused on the long term and avoiding impulsive decisions is key to making the most of your KiwiSaver savings.
If you have concerns about your investment strategy, speak to a Generate adviser before making any changes.
Stay steady. Stay invested. Let time do the work.