TSP Withdrawal Calculator
Understanding how far your Thrift Savings Plan can take you in retirement is just as important as understanding what your federal retirement is worth. That is exactly why this is the perfect companion to our FERS retirement calculator.
By using the TSP calculator below, you will be able to see what your TSP can do throughout retirement, both with and without inflation. And if you find yourself looking for TSP advice beyond what you learn on this page, please reach out and let us know!
THREE STEP PROCESS
to Calculate Your TSP Distributions
Enter Your Current Balance
Why do we need this?
To estimate the size of the withdrawal, we need to know how long you can take monthly withdrawals before your account reaches $0.
What if I’m not retiring for a while?
Keep in mind that the purpose of this tool is to help estimate what your TSP can do for you in retirement, so it might make sense to estimate what you think your balance will be when you retire. If you are still unsure, either use today’s current balance or give us a call!
Enter Your Expected Interest Rate
Why do we need this?
How much your balance grows over time can significantly impact how much can be withdrawn. Entering an interest rate will help us estimate how impactful that change might be.
How do I determine the interest rate?
It would be best to estimate this based on your current allocation. Historical averages of each fund can be found at https://www.tsp.gov/fund-performance/
Which interest rate should I use?
There are two big things to remember here:
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- The more volatile a fund is, the longer you need to “ride out” the down swings.
- A lower interest rate leads to a more conservative estimate.
When in doubt, it is better to err on the conservative side. If you are still unsure, give us a call!
How do I account for inflation?
Great question! Nobody has any way of knowing absolutely what inflation will be in the future. This is why we give you two estimates: one with a 3% inflation and one without. That should help give you an idea of how inflation could impact the size of your withdrawals.
Enter Number of Years You Plan to Withdraw
Why do we need this?
The time period over which you plan to use your money will greatly impact the size of each withdrawal. Think about it this way: $50k spread out over 12 payments would result in a much larger payment than $50k spread out over 60 payments!
What is a good estimate?
While the average mortality age is somewhere in the mid- to late-70s, using an estimate based around an age like that would only work for half of the population. To be conservative, it is probably best to use an estimate that takes you past the age of 90.
