TSP Millionaires Decline in Early 2025: A Look at the Numbers

After setting a record at the end of 2024, the number of TSP millionaires dropped 7% at the end of the first quarter of 2025 according to new data from the Federal Retirement Thrift Investment Board (FRTIB).

Total millionaires in the TSP went from 157,760 at the end of December 2024 to 146,910 at the end of March 2025. This is due to the decline in stock prices so far this year. 

The TSP stock funds were generally down in February and March. During March, for instance, the C Fund fell 5.64%, the S Fund was down 7.92%, and the I Fund was basically flat with a positive return of 0.02%.

According to the FRTIB, the 146,910 millionaires represent approximately 2% of the roughly 7.2 million total TSP accounts. 

The table below shows the full breakdown of the TSP account balances as of the end of March:

These figures include FERS, CSRS, and Uniformed Services participants but do not include beneficiaries. TSP participants with civilian and Uniformed Services accounts have been grouped together to reflect total TSP investment per individual.

The largest account balance in the TSP is now $8.73 million. While that is an impressive figure, the largest account balance has been higher in the past. At the end of 2021, for instance, the largest account balance was $10,975,527. 

This table shows how the number of TSP millionaires has changed over time:

How Do TSP Millionaires Reach the $1 Million Mark in the TSP?

Federal employees who have accumulated over a million dollars in their Thrift Savings Plan (TSP) accounts have achieved this significant milestone through a combination of disciplined investing, consistent contributions, and patient long-term strategies. These individuals often share common financial habits and approaches that have paved the way to their success.

One key factor is the power of compound interest over time. Many TSP millionaires have contributed steadily to their accounts throughout their federal careers, maximizing their contributions and taking full advantage of employer matching. Note in the table above that the average years of contributions to the TSP for accounts with a $1 million or greater balance is 28.62 years, nearly 3 decades of steady contributions during their time in federal service.

They also invest primarily in the TSP stock funds (C, S, and I) as these produce better returns over time. While the G Fund is considered the “safest” fund in that it never goes down, historical data show that it produces the lowest compound returns over time in comparison to the stock funds.

Discipline during market volatility is another hallmark of TSP millionaires. Rather than reacting impulsively to short-term market fluctuations, these investors stayed the course, trusting in their long-term strategies. This resilience ensured they benefited from market recoveries and growth periods, reinforcing the importance of patience in the investment process.

While this strategy is simple, it is often quite difficult to do in practice. Human nature will often cause us to panic when we see our account balances falling during times of stock market upheaval. The recent wild swings in the market brought on by the global tariffs situation are a perfect example. However, the stock market has always provided consistent positive returns over time for those who have the discipline to remain invested.

For other federal employees aspiring to join the ranks of TSP millionaires, the lessons are clear: start contributing as early as possible, aim to maximize contributions, diversify investments wisely, and remain committed to long-term goals despite market ups and downs.