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TSP Millionaires 2025: How Many TSP Millionaires Are There?
Even as agencies juggle furloughs and funding uncertainty during the ongoing 2025 government shutdown, one story of long-term success is quietly unfolding among federal employees:
The number of TSP millionaires has reached an all-time high.
According to the Federal Retirement Thrift Investment Board’s October 2025 report, nearly 190,000 Thrift Savings Plan participants now have account balances exceeding $1 million, about 2.6% of all TSP accounts nationwide. That’s roughly 19,000 new millionaires in just the past three months.
Most of these employees aren’t financial experts or high earners, they're steady contributors who stuck with the plan through every administration, shutdown, and market drop.
In our experience advising federal employees for over two decades, we’ve seen one truth play out again and again: consistency and patience beat timing and luck every time.
The Latest Numbers TSP Millionaires at a Record High
Despite the political noise and market swings, TSP participants are quietly building long-term wealth.
As of October 1, 2025, participation and balances have hit new milestones:
Source: Federal Retirement Thrift Investment Board, October 2025
What’s driving the growth? Steady contributions, the long-term power of compounding, and solid market performance. The C Fund (S&P 500) and S Fund (small-cap index) both posted double-digit gains this year, helping career-long investors hit major milestones.
Also read - how many tsp loans can you have
Don’t leave your federal retirement to chance. Get a free consultation with our experts before the next TSP or FERS update impacts your plan. Spots fill fast secure your session today and see how close you are to becoming the next TSP millionaire.
What Actually Creates a TSP Millionaire (It’s Not Luck)
We’ve worked with hundreds of clients who’ve achieved and kept million-dollar balances in their TSP. The patterns are remarkably consistent:
1. Consistent Contributions
Every paycheck matters. Employees who contribute at least 5% to earn the full government match often double their retirement savings compared to those who don’t.
We’ve seen employees start at 3% and slowly increase to 10% or more and that small discipline completely changes their retirement math.
2. Time in the Plan
The average TSP millionaire has been contributing for 28 years or longer.
Even modest contributions compound dramatically when left alone for decades.
3. Allocation Discipline
They stay invested in a diversified mix of growth funds (C and S Funds) through good years and bad instead of jumping in and out during market swings.
4. Avoiding the Four Big Mistakes
- Taking loans and not repaying them
- Withdrawing early before 59½
- Parking everything in the G Fund for “safety”
Trying to time the market
Checkout the TSP calculator
Your Million-Dollar Roadmaps by Career Stage
Early Career (Under 10 Years of Service)
If you earn $55,000 and contribute 5%, with the match, that’s $5,500 a year invested.
At a 7% return, you can reach $1 million in about 36 years.
Raise your contribution by 1% each year, and you’ll shave nearly six years off that timeline.
In our experience, new hires who set automatic increases early rarely miss the extra money but they absolutely feel the long-term reward.
Mid-Career (10–20 Years of Service)
If you have $250,000 saved by age 45 and contribute $18,000 annually (including match), you could cross $1 million by age 60 with consistent returns.
Avoid the temptation to “pause” contributions during family or financial stress even a few missed years can cost six figures later.
Late Career (20+ Years of Service)
Now the goal shifts from growth to preservation.
Rebalance annually, maintain some equity exposure for inflation protection, and limit withdrawals to around 4% per year once retired.
We often remind clients: protecting your million is just as important as building it. Asset allocation, not luck, determines how long your money lasts.
Taxes & Withdrawal Strategy Keeping What You Earned
Reaching $1 million is impressive; keeping it after taxes is smart planning.
Traditional vs. Roth TSP
- Traditional TSP: Pre-tax contributions reduce today’s taxable income; withdrawals are taxed later.
- Roth TSP: Contributions are taxed now; qualified withdrawals are tax-free.
Choosing depends on whether you expect a higher or lower tax rate in retirement.
Coordinate with FERS and Social Security
Your FERS annuity and Social Security already fill certain income brackets. Strategic TSP withdrawals can help manage your tax exposure.
We often find that mixing Traditional and Roth balances gives retirees the best flexibility for tax-efficient withdrawals.
At Retirement
- RMDs (Required Minimum Distributions) begin at age 73.
- You can roll part of your TSP into an IRA for flexibility, but the TSP’s fees remain among the lowest in the industry.
If you separate after age 55, you can access funds penalty-free (age 50 for law enforcement/firefighters).
Life Event Spotlight FERS Divorce Calculator & Your TSP
Divorce can significantly impact your retirement benefits, especially your FERS annuity and TSP balance.
A Court Order Acceptable for Processing (COAP) determines how these assets are divided.
How COAP Works (Example)
If you have 25 years of federal service, and 10 of those years overlap the marriage, the marital share is 10 ÷ 25 = 40%.
If the court awards half that share, your ex-spouse receives 20% of the annuity earned during the marriage.
A simple FERS Divorce Calculator uses:
- Total years of service
- Years married while in service
- Court-awarded percentage
TSP Division
TSP funds can also be divided by percentage or dollar amount. Transfers go directly to the former spouse’s IRA or TSP no tax to the participant.
In our experience advising divorcing federal employees, the most common mistake isn’t the division itself it’s forgetting to update beneficiaries afterward. Always file a new TSP-3 immediately.
Staying a TSP Millionaire Managing Risk and Emotions
Reaching millionaire status is the result of decades of discipline; losing it often happens in a moment of panic.
- Rebalance once a year don’t let gains in one fund dominate your allocation.
- Keep 1–2 years of withdrawals in the G Fund as a safety buffer.
- Resist emotional reactions during shutdowns or elections.
- Stay the course compounding only works if you remain invested.
We tell our clients: “Your TSP doesn’t watch the news and it doesn’t care who’s in office.”
Ready to Build or Protect Your Million?
Becoming a TSP millionaire isn’t about luck or perfect timing. It’s about time in the plan, smart decisions, and patience.
In our experience advising thousands of federal employees, those who review their TSP annually and align it with their retirement goals consistently outperform those who “set it and forget it.”
If you’d like a personalized projection or want to see how factors like divorce, early retirement, or tax changes might affect your balance let’s talk.
Schedule a free consultation with our Federal Retirement Experts.
We’ll model your TSP growth, run your FERS divorce calculation, and design a strategy to help you reach and keep your million-dollar goal.
Key Takeaways
- 190,000 TSP millionaires as of October 2025 proof that steady investing works.
- Average tenure: 28 years of contributions and discipline.
- Long-term consistency, not high-risk moves, creates wealth.
- Divorce, taxes, and withdrawals all require smart planning.
- Professional guidance turns numbers into a real retirement strategy.
Quick Answers to Common Questions
How many TSP millionaires are there now?
Roughly 190,000 as of October 2025 about 2.6% of all TSP participants.
How many new TSP millionaires this quarter?
About 19,000 more than last quarter.
Average years contributing?
Around 28 years.
Average balance overall?
Approximately $204,000.
Top funds for growth?
The C Fund and S Fund remain the primary drivers of long-term performance.
Desclaimer -
The information provided in this article is for educational purposes only and should not be considered financial, tax, or legal advice. Federal Retirement Advisors is an independent advisory firm and is not affiliated with the Federal Retirement Thrift Investment Board, the Office of Personnel Management (OPM), or any government agency.
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Jeremy Haug
Jeremy is a seasoned contributor for Federal Pension Advisors bringing years of experience in helping federal employees understand their pension and benefits. His goal is to make retirement planning clear, practical, and empowering.
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