Tsp Retirement Calculator

How to Use the TSP Retirement Calculator

This step-by-step guide will walk you through using the TSP Retirement Calculator to estimate your retirement savings and potential income. Make sure you have the necessary information ready before you begin.

Step 1: Enter Your Personal Information

• Current Age: Enter your current age in years. This value must be between 18 and 80.
• Expected Retirement Age: Enter the age at which you plan to retire. This value must be between 50 and 85.

Step 2: Input Your Financial Details

• Current TSP Balance ($): Enter your current Thrift Savings Plan (TSP) balance in dollars. This figure should not be negative.
• Annual TSP Contribution ($): Input the amount you contribute to your TSP annually. This number must be between $0 and $22,500.
• Employer Match (%): Provide the percentage of your salary that your employer matches for your TSP contributions. This percentage should be between 0% and 5%.
• Expected Annual Rate of Return (%): Estimate your annual rate of return on the TSP investments. This percentage should be between 1% and 12%.

Step 3: Choose Your Primary Fund Allocation

• Select the fund that you primarily allocate your TSP investments to from the options below:
  • G Fund (Government Securities)
  • F Fund (Fixed Income)
  • C Fund (Common Stock)
  • S Fund (Small Cap Stock)
  • I Fund (International Stock)
  • L Fund (Lifecycle)

Step 4: Review Your Results

Once you have entered all the required information, the calculator will generate the following results:

• Years Until Retirement: Displays the number of years until you reach your expected retirement age.
• Annual Employer Match: Shows the dollar amount your employer contributes annually to your TSP based on the specified match percentage.
• Projected TSP Balance at Retirement: Estimates the total value of your TSP at retirement, considering your contributions and the expected rate of return.
• Estimated Monthly Retirement Income: Calculates your potential monthly income from your TSP balance, assuming a 4% annual withdrawal rate.
• Total Lifetime Contributions: Displays the total contributions made by you and your employer over your working years until retirement.
• Total Investment Gains: Calculates the gains from your investments in the TSP, excluding total lifetime contributions and initial balance.

Using this guide, follow the steps systematically to understand your retirement savings trajectory and adjust your financial plans accordingly.