If you want monthly income from your TSP account when you separate from Federal service, you have two options:
TSP monthly payments and a life annuity (View Feature Comparison Chart).
This calculator will help you decide whether
receiving monthly income is right for you by comparing the available options and features that might
meet your needs. (If you are currently receiving TSP monthly payments and you want to do some calculations
to choose a different payment amount, use the Monthly Payment Calculator.)
Answer all of the questions in this calculator to help you decide which monthly income options and features
meet your needs. At the end, you will be able to view and compare all your monthly income options.
For example: If your TSP account balance at retirement is $500,000, and you take a
of $100,000 to buy a home, you will have $400,000 available for monthly income.
As people begin to realize the impact of their lifestyle choices on longevity, and as medicine advances,
it's likely that healthy 65-year-olds could live well into their 90s. As you consider your retirement needs,
think beyond the average (75.4 years for men and 80.4 for women*) and keep in mind the real possibility that
you may need 30 or more years of retirement income. According to pension mortality tables, a healthy,
65-year-old American man has a 50% chance of living 20 more years to age 85, and a 25% chance of living to age 92.
A 65-year-old woman in good health has a 50% chance of living to age 88 and a 25% chance of living to 94.
There is a 25% chance that at least one member of a 65-year-old couple will live to age 97.**
The rate of return you assume for your account while you are receiving TSP monthly payments will depend on
how you plan to have your account balance invested in retirement. If you guard all your retirement savings
completely against volatility, the 5% rate of return that we show as an example may be unrealistically high.
On the other hand, as you are drawing down your account balance, you should be careful not to leave yourself
exposed to a great deal of volatility. View the
Summary of Returns
for all the TSP funds and get an idea of how the funds have performed over time. Keep in mind that past
performance is not a guarantee or a predictor of future returns. You might want to take a look at the L Income
Fund, which is especially designed for participants withdrawing their TSP accounts in monthly payments. Its
goal is to provide you a low level of growth with emphasis on preserving your assets.
You have entered a span of more than 50 years from the age you want to start receiving monthly income to your estimated age at death. Is this what you intended?