Man uses calculator and laptop while sitting at desk to calculate contributions. Federal employees can use average TSP balance and similar metrics to help get a broad understanding of how they're doing.
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Employees want to know how much they need to save and accumulate during their careers to avoid running out of money in retirement. Federal employees, in particular, want to know if they have accumulated enough in their Thrift Savings Plan accounts to have worry-free retirements. A good way to measure whether enough is being accumulated for retirement is to compare one’s account balance with the balances of other workers in the same age group.
The average balance is the aggregate amount in all the accounts divided by the number of accounts. The median balance is the balance that is the midpoint after all the balances are sorted from highest to lowest. The median will be less than the average, because relatively few accounts with high balances increase the average. An employee with a balance exceeding the average has saved more than most employees of the same age. An employee whose balance lags the median is well behind most others in the age group.
Comparing one’s TSP account balance to the average or median of others in the same age group can be a powerful tool. When the account balance is well below the average and especially if it is below the median, the employee might be motivated to adjust the savings and investment plan to increase the balance over time. A worker whose balance is above the average or median receives reinforcement of a good plan and habits and is encouraged to continue.
Federal employees should be careful not to compare their account balances with average retirement savings of private sector workers. Most private sector workers do not receive employer pensions. They rely on Social Security and 401(k) balances to fund their retirements.
Federal workers in the TSP also receive pensions. For example, a federal employee who retires at age 62 after 30 years of service and the highest three years of earnings of $100,000 will receive a Federal Employee Retirement System pension of $33,000 annually. A federal employee who will retire with a full FERS pension needs to save considerably less in the TSP than a private sector worker who does not have an employer pension and must save in a 401(k) plan. One estimate is that a federal employee needs to accumulate 40% to 50% less in TSP than private sector counterparts.
The overall average FERS TSP balance in 2025 was $198,000, according to Federal Pension Advisors citing FRTIB data. The median was around $50,000. Those numbers include workers of all age groups.
It is important to recognize that age is not always the appropriate comparison point. Years of service in the federal government are more important. It is likely that most people in the same age group have similar years of service. But some people join the federal workforce later in life, giving them fewer years of service than others in the same age group. There are also other key factors that influence the TSP account balance.
Below, are the average TSP balance by age for different age groups, using data from FedTools.
As stated earlier, people start their federal careers at different ages. Someone who joined the federal workforce at age 35 should not expect to have the same TSP balance as someone the same age who has been contributing since age 25. Here are different ranges of account balances and the average number of years employees with those account balances contributed to the TSP, according to FedTools. There is no data provided for age groups above the 60s.
Several key factors influence the TSP account balance over time. These include the compensation level, the percentage of compensation contributed to the TSP account by the employee, the agency’s matching contribution rate and the account’s rate of investment return, which is determined by how the account is invested.
The employee’s compensation level is a key factor influencing the balance in the TSP account, because both employee and employer matching contributions are a percentage of salary. An employee can select a 5% contribution rate and receive the maximum 5% matching contribution from the employer for a total contribution of 10% of income. An employee with a 5% contribution who earns $50,000 would have $5,000 contributed to the TSP account by both the employee and the employer while $10,000 will be deposited into the account of an employee earning $100,000.
As compensation increases over a career, the dollar amount contributed to the TSP increases even if the contribution rates do not change. Keep in mind that the tax-deferred contribution amount is limited by federal tax law. The limit is $24,500 in 2026. Workers who are ages 50 and older can make an additional $8,000 catch-up contribution. There is a super catch-up contribution of $11,250 in 2026 for workers ages 60-63. For workers who were paid more than $150,000 in 2025, any catch-up contributions must go into a Roth-type plan, meaning they are not tax deferred. Higher amounts can be contributed, but they are included in taxable compensation for the year.
A federal employee can select the percentage of compensation that is contributed to the TSA account. More money is deducted from compensation and deposited in the TSP account as the contribution rate is increased. Doubling the contribution rate roughly doubles the account balance over the course of a career.
Importantly, the employing agency makes contributions to employee accounts. There is an automatic 1% agency contribution for all eligible employees, even those who do not contribute to their accounts. There is an additional matching contribution based on the amount the employee contributes to the account. The agency matches up to 5% of the basic pay when the employee contributes at least 5% of compensation. The agency matches 100% of the first 3% of pay the employee contributes and 50% of the next 2%.
The employer matching contribution is free money to the employee. An employee who does not contribute at least 5% of compensation to the TSA account gives up money the agency would have contributed to the account plus the future investment earnings on that money.
Investment returns are a major contributor to the TSP account balance over the course of a career. People who start saving and investing early in their careers discover that compounded investment returns are a high percentage of their balances at retirement, often 70% or more. Those who begin saving later or who save modest amounts in their early years will find that their contributions are a greater portion of the account and the account balance is lower than it could have been.
The combination of investment choices and market performance greatly affect the account balance. Someone who invests conservatively is likely to have lower investment returns and a smaller TSP balance than someone who takes a bit more risk. But investments, especially stocks, occasionally have periods in which they lose value. The value of an account can decline significantly when it is invested primarily in stocks during such periods. Federal employees should recognize this, especially when they are near retirement age and their accounts are near their peak levels. A significant decline in the account’s value at that time could require a reassessment of retirement plans.
A federal worker usually has three sources of retirement income. There is the FERS pension, which is 1.0% to 1.1% for each year of service multiplied by the average of the highest three years of salary. Most federal workers also qualify for Social Security benefits. The TSP account is the third source of income. Many federal workers will find that FERS plus Social Security will amount to 50% to 60% of pre-retirement compensation.
One simple way to calculate if the TSP balance is on track is to look at the targets for private sector workers (such as those published by Fidelity Investments and Vanguard Group) and reduce them by 40% to 50%. For example, Fidelity suggested retirement account savings targets of one times income at age 30, three times income at age 40, six times income at age 50 and eight times income at age 60. At retirement age, an accumulation of 10 times pre-retirement income is recommended.
Another method is to project the amount of retirement income each of the three sources will pay. Social Security’s website has tools that estimate a participant’s retirement benefits. The FERS website has similar tools, and FERS is structured to pay 33% of final compensation to those who qualify for full retirement benefits. Then, estimate how much cash flow the TSP account will provide. A simple way to do that is to assume 4% to 5% of the balance will be withdrawn each year. There also are some online tools that are independent of the government to help make these estimates.
A federal employee who wants or needs to increase the TSAP balance should consider several actions. The most common and effective action is to increase the employee contribution rate. Be sure to contribute at least 5% of salary to qualify for the full matching contribution from the agency. Also, take advantage of the catch-up contributions allowed to those ages 50 and older and the super catch-up contributions for those ages 60 to 63. A federal employee who has maximized tax-deferred contributions can consider making after-tax contributions to the TSP account or saving additional money outside TSP through a brokerage or mutual fund account.
It is important to avoid taking loans or early distributions from the TSP account. When money is taken from the account it no longer is earning investment returns, so the cost of a loan or early distribution is very expensive in the long term. Another way to increase the TSP account balance is to adjust the investments in the account. Stocks earn higher returns over time than other investments. There is risk in stocks, especially in the short term. But a more aggressive investment posture often is a good way to get a retirement plan back on track.
It is important to review a retirement plan regularly to determine if it is on track or changes need to be made. At the start, establish goals for the amount to be contributed to the TSP account, the estimated investment return and the amount to be accumulated at different ages. Review the account and the plan at least annually to assess whether higher contributions or other changes should be made. Be careful not to make the mistake of monitoring the account balance too frequently, especially after markets have declined. Frequent reviews and paying attention to short-term developments often cause unnecessary stress and can lead people to make abrupt investment changes that disrupt their long-term plans.
Periodically review the latest estimates of benefits from FERS and Social Security. These are unlikely to change much from year to year. Yet, it is important to ensure the information in the systems, such as your compensation, is correct and that the projections remain in line with your goals.
The Thrift Savings Plan is the federal government’s alternative to the 401(k) plans offered in the private sector. The annuities paid from the Federal Employee Retirement System and Social Security provide a base of retirement income. Federal employees can use the TSP to provide retirement security by supplementing those two sources of income. The amount accumulated in the TSP account depends on the amount the employee contributes each year, how the account is invested and how long the employee contributes to the account.
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