KiwiSaver members told: Don't get spooked

Actuarial firm MJW has released a report looking at the impact of a market correction on KiwiSaver funds.

It says booming stock markets over recent years have sparked concerns of a major market correction in the near future.

"A risk identified is that members in a growth option or similar will suffer a significant negative return, causing them to switch to a more conservative option and then sit in this fund in future, suffering further reduced returns as a result."

The firm compared two hypothetical funds: a growth fund with 80% in growth assets and a conservative fund with 20% in growth assets.