A growing number of federal employees are retiring with more than $1 million in their Thrift Savings Plan (TSP) accounts, a milestone once considered rare. New data from the Federal Retirement Thrift Investment Board (FRTIB) reveals that the number of TSP millionaires surged in the second quarter of 2025, rebounding strongly after a dip earlier in the year.
A Strong Quarter
According to TSP’s latest quarterly report,171,023 federal employees now hold over $1 million in their retirement accounts. This marks a significant turnaround from Q1 of 2025, when market volatility caused a temporary decline in millionaire accounts.
The increase in TSP millionaires has been rapid when you consider that in March 2020, there were 27,212 millionaires, which grew by over 500% to 171,023 in just a little over five years. Despite this increase, millionaires still account for only 2.37% of all participants, while those with account balances under $50k account for nearly 60%.
Keys to Success
Time in the System: The average TSP millionaire has been contributing consistently for roughly 28 years. That kind of longevity allows compound interest to work its full magic. These are not overnight success stories; they’re decades in the making.
Aggressive, Yet Disciplined Investment Choices: Million-dollar account holders tend to invest heavily in the C Fund (which tracks the S&P 500), as well as the S and I Funds, which focus on small-cap and international stocks. They typically avoid parking large amounts in the ultra-conservative G Fund, especially during their early and mid-career years.
Consistent Contributions: TSP millionaires made steady contributions regardless of market conditions, often maximizing their annual deferrals and taking full advantage of agency matching contributions.
Resilience During Market Downturns: Many of today’s TSP millionaires stayed invested during periods of severe market stress. Rather than pulling out during downturns, they rebalanced and stayed the course.
By The Numbers
Balance >$50k
4,224,614 Participants (58.51%)
6.01 Avg Years of Contributions
$50k-$249k
1,838,249 Participants (25.46%)
14,28 Avg Years of Contributions
$250k-$499k
603,266 Participants (8.36%)
19.92 Avg Years of Contributions
$500k-$749k
254,918 Participants (3.53%)
22.78 Avg Years of Contributions
$750k-$999k
128,010 Participants (1.77%)
24.78 Avg Years of Contributions
≥$1 million
171,023 Participants (2.37%)
28.13 Avg Years of Contributions
Planning Ahead
The increase in TSP accounts reaching millionaire status highlights both strong market performance and years of disciplined, strategic investing. Although not all federal employees will hit the million-dollar mark, many can build a solid retirement by adopting key practices: begin investing early, maintain steady contributions, and focus on long-term growth. To optimize your TSP approach, consult a Federal Retirement Consultant (FRC®) who specializes in your unique benefits.
