Elliot Smith, an analyst with Morningstar - a research company which collects performance data on KiwiSaver funds, says his advice to people is not to do anything provided they are in the right fund for them.
"My advice is not to panic. People should be focusing on their long term goals.
"They shouldn't be looking at their balance on a frequent basis."
If you're in your 20s and 30s there is plenty of time for your KiwiSaver fund to bounce back and if you're saving for a house your money should be in a more conservative fund.
They shouldn't be looking at their balance on a frequent basis.
Savers who pull out of a growth fund now and switch to a conservative fund risk crystallising their losses and missing out on the recovery when the market does bounce back.
Smith cites last years market down-turn which hit KiwiSaver funds in the September quarter and then bounced back after a strong recovery in December.
"During the fourth quarter the performance was really strong. All of the losses were recovered."
Smith says those who switched in September would have cemented their losses.
"If you had moved from a growth to a conservative fund the upside from the strong December quarter would not have been as great."
"You would not have caught up to where you capital was [before the down-turn]."
Sure, you could have played it exactly right and switched back to a growth fund just as the tide was turning but the odds of being able to do that are slim.
"Even the professionals can't do it," Smith says.
One positive way to look at a market down-turn is to think of it as a massive share sale.