Ask Susan: Protecting Your Savings from a Recession and Navigating the Trans-Tasman Pension

RNZ's Susan Edmunds provides financial guidance on protecting KiwiSaver during a recession, aggressive investing at 63, and pension eligibility for Kiwis moving to Australia.

By: AXL Media

Published: Apr 20, 2026, 8:53 AM EDT

Source: RNZ Pacific

The Breaking Development: Managing KiwiSaver During Economic Downturns

A primary concern for those nearing retirement is the impact of a potential recession on their KiwiSaver balance. For a 66-year-old still working to pay off a mortgage, the fear of loss is significant.

The Advice: Susan suggests that settings shouldn't be changed solely due to economic "noise," but investors must align their fund type with their risk tolerance.

Strategic Shift: If an investor cannot afford to see a balance drop in the short term, moving to a conservative or cash fund may be appropriate. Conversely, if the funds aren't needed for another decade, staying the course in a growth-oriented fund allows the investor to wait out market volatility.

Debt vs. Investment: Susan highlights a crucial trade-off: using KiwiSaver funds to pay off a mortgage. If interest rates rise as expected, the savings from paying down a home loan might outweigh the potential returns of a KiwiSaver fund.

Background and Strategic Context: High-Risk Investing at 63