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TSP Calculator

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How much your balance grows over time can significantly impact how much can be withdrawn.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:

    1. The more volatile a fund is, the longer you need to “ride out” the down swings.
    2. 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.

STEP 1 of 3

Fill Out Your Information




    STEP 2 of 3

    Get Your Monthly Withdrawal Estimate

    0% Inflation

    ~$0

    3% Inflation

    ~$0

    Important note about inflation:

    To properly project for withdrawals of retirement savings, it is important to consider the time value of money and inflation. As prices rise, the value of the dollar decreases, requiring larger withdrawals to maintain the same lifestyle as time progresses.

    The Federal Reserve now aims to keep annual inflation to 2% in America, however historical rates have averaged slightly higher than that. Because of this, we have chosen a 3% rate of inflation to provide a slightly more conservative estimate of what one may expect.

    STEP 3 of 3

    Why You Should Consider

    More Than Just These Numbers

    Gross vs.
    Net Income

    Aside from trading a salary for a pension, many other factors affect income in retirement. Cost of healthcare, federal & state income taxes, and spousal income are just a few of these things. Properly accounting for all changes is the best way to secure your future.

    Social Security
    & Supplement

    For most people, Social Security benefits do not begin until age 62, at the earliest. But if one retires in their late 50s, they may be eligible to begin receiving the supplement. Although these are functionally similar, they have a few significant differences with which people should be well acquainted.

    Military Time
    & Sick Leave

    Both military time and sick leave can improve your pension by increasing your creditable years of service. The strategy surrounding both can be overwhelming but talking with an expert can streamline the process and maximize your benefits.

    TSP
    Distributions

    The frequency and size of TSP distributions can directly impact a multitude of things in retirement, up to and including whether your retirement plan will last for the rest of your life. Talking with someone who understands your situation can help avoid many costly mistakes.

    Additional
    Considerations

    There is no one component of a retirement plan that can guarantee success. Rather, one should assume a holistic approach that considers all components of their federal retirement on top of a sound financial plan and speaking with a professional can make sure a key component does not go overlooked.

    Take the first step in learning about your federal benefits today!