When headlines are grim and markets fall, doing something – anything – may feel better than doing nothing.

But when volatility has an impact on KiwiSaver balances, the most common reaction can also be the most damaging one: trying to outsmart the market at exactly the wrong time.

Moving between Funds in response to short‑term market moves might feel logical, but that kind of reactive switching often does the opposite of what people intend, said Milford Senior Associate Maddie Cruickshank in episode 70 of Bridge talks Business.

“When you do that, you will effectively crystallise and lock in any losses that the Fund has made, because you’re selling the units at a cheaper price,” she said.

“People sell units at a cheaper price, then when they see markets going back up again, they jump back in and buy units at a higher price. So you’re going to have less.

“When markets correct themselves and go back up, you get to benefit from that correction. What people don’t realise is by the time they see the performance going back up, they’ve actually missed that, because it’s not live.”

Cruickshank acknowledged the emotional pressure investors feel during times of global market turmoil, but encouraged pausing and reflection over a kneejerk reaction.

“No one likes to see their balance go down. And ultimately, it is your hard‑working money that you’re watching go down. [But] the first step would be: stop. Don’t panic. Instead, you should revisit why you originally chose this Fund – has your investment timeframe changed? Has your risk tolerance changed?” she said.

“With KiwiSaver, we do try and get clients to remember that this is a long‑term strategy. So what you’re seeing now shouldn’t be too much of a worry if you are saving for retirement and you have that healthy long investment timeframe.”

For people with long-term investments, Cruickshank advised against checking their balance daily. Short‑term volatility doesn’t change the underlying purpose of a long‑term investment strategy.

And despite how abnormal the world may seem in 2026, for long-term investors, it isn’t.

“Volatility is normal. This isn’t the first time we’ve been here before.”

Catch the full conversation between Ryan Bridge and Maddie Cruickshank in Bridge talks Business episode 70