Markets & Geopolitics — Staying Focused
Recent global tensions have understandably caused some concern. Headlines can make market movements sound dramatic, here's what's important to know:
Markets move fast
By the time news is widely reported, markets have usually already adjusted. Diversified portfolios have moved only a few percent in recent weeks, well within the normal range for balanced funds.Don't react to the noise
Switching strategies after markets have already fallen is often too late. Your portfolio is structured with diversification across countries, industries, shares, and bonds ,specifically to reduce the impact of events like these.Professional managers are on it
Your fund managers monitor global events daily and adjust portfolios as needed. This is their job, and situations like the current one are constantly being assessed.Regular contributors
This could work in your favour. When markets dip, regular contributions (such as through KiwiSaver) buy more units at lower prices. This is dollar cost averaging, and it can boost long-term returns.
We've seen many market cycles since the late 1980s ; the 1987 crash, the GFC, COVID. The consistent lesson: markets recover, and long-term investors who stay the course are rewarded.
If recent events have raised questions about your investments, get in touch — we're happy to talk it through.
Important KiwiSaver Changes for Employers
From 1 April 2026, KiwiSaver minimum contributions are increasing. Both employers and employees will move from 3% to 3.5%.
Key actions before 1 April:
Update your payroll software to apply the new 3.5% rate
Review employment budgets for the increased cost
Communicate the change to your team — including the temporary reduction option available through Inland Revenue
Check employment agreements that reference KiwiSaver rates
Note: A further increase to 4% is signalled for April 2028 — worth factoring into longer-term planning.
Great News for 16- & 17-Year Olds
From 1 April 2026, employer KiwiSaver contributions now apply to employees aged 16 and 17.
Previously, employer contributions only kicked in at age 18. Now, if a younger employee is a KiwiSaver member and making contributions, their employer must contribute too.
This is a fantastic opportunity for young workers in retail, hospitality, agriculture, and tourism to start building retirement savings earlier — with their employer's help.
If you have a 16- or 17-year-old in your life who is working, encourage them to join KiwiSaver now to take advantage of this change. We can work with them to select a provider and help start their money plans.
