Your TSP and A Secure Federal Retirement

Career federal employees will find that, with planning, thinking through their investments, and building an investment plan, they have an excellent chance of enjoying a comfortable retirement.

The FERS retirement system provides a defined annuity benefit. The amount paid through this system is not static but is linked to an annual cost-of-living adjustment (COLA) through a complex system. In addition, unlike the older CSRS system, which was replaced by FERS, federal retirees also receive Social Security benefits during their retirement years.

On top of this, the Thrift Savings Plan (TSP) provides additional funds to help support a more comfortable retirement. The TSP is similar to a 401(k) retirement plan used by private companies, and the TSP system is one of the most popular federal employee benefits.

It is not hard to see why the TSP is so popular. As noted by the TSP: “As a TSP participant, you’re part of one of the finest retirement plans in the world. Taking advantage of this opportunity is simple—investing in your future doesn’t have to be hard.”

Record Number of TSP Millionaires in 2025

The number of TSP millionaires has grown substantially over the years. As of January 1, 2026, there are now 194,722 TSP millionaires. And, for those who may be wondering, the largest TSP account now stands at $9.96 million.

Another 136,594 TSP investors have between $750,000 and $999,000 in their TSP accounts.

Here is a breakdown showing how the number of TSP millionaires has grown in recent years:

DateNumber of
TSP MillionairesGrowth from
Previous PeriodMarch 202027,212—June 202045,21966%December 202075,42067%June 202198,87931%December 2021112,88014%June 202272,241-36%December 202276,8896%June 2023100,53431%December 2023116,82716%March 2024134,93215%June 2024140,4034%March 2025146,9105%June 2025171,02316%September 2025189,83611%December 2025194,7222.6%

Words of Thanks from One Retired Federal Employee

2025 was a rough year for many federal employees indicated by various articles on FedSmith and numerous reader comments describing how miserable it was for them working within the federal workforce in the last year.

To put the TSP in perspective as a valued federal employee benefit, and one providing a positive outlook to the start of a new year, here is a comment from a reader who describes himself as “RetiredAccountant” and who described the TSP in this way:

I’m retired and contributed for 30 years to the TSP and have an additional 6 years of retirement with no contributions to the TSP when my balance took off to the moon.

As always …
• Thank you Uncle Sam for the many years of employment.
• Thank you US for the matching contributions.
• Thank you IRS for the Catch-Up contribution Regulations.
• Thank you TSP for having limited investment choices, otherwise I would have screwed it up big time if there were more options.

Thanks to my former co-workers for making reporting for duty enjoyable.

God Bless America!

How TSP Returns Have Created More Millionaires

The TSP returns are not a fluke, driven by another great year in the stock market. Here is how the Core TSP Funds have provided long-term financial benefits to investors. Note that while the G Fund has never lost money in a down stock market, it also has much lower returns for TSP investors over time.

Retirees who may be seeking to preserve their money for the length of their retirement may choose to invest more in the G Fund to preserve their assets and avoid the big downturns that can seriously damage an investment fund.

Those with years to go before retirement often choose to take more short-term risk and invest for the long term by seeking higher returns from stocks. Making investment decisions with your TSP Funds is an individual choice, and it is often hard to stick to a plan when stocks are booming or falling fast.

Fund2025 Returns10 Year ReturnsFund TypeG Fund4.44%2.76%Government securities (low risk)F Fund7.21%2.11%Fixed income (bonds)C Fund17.85%14.79%Large-cap U.S. stocks (S&P 500)S Fund11.38%11.04%Small/mid-cap U.S. stocksI Fund32.45%8.7%International stocks

Our congratulations to those who have reached the $1 million milestone in their TSP accounts! Those of us here at FedSmith hope to see continuing growth in this number in the coming years!

© 2026 Ralph R. Smith. All rights reserved. This article
may not be reproduced without express written consent from Ralph R. Smith.