Why Have TSP Millionaires Declined?
Federal government employees and retirees have long known the Thrift Savings Plan (TSP) is a solid, low‑cost retirement vehicle. What may be harder to grasp is just how powerful it can be over time.
The latest numbers show that the TSP now has nearly 185,000 TSP millionaires. Despite this high number, it is less than the 195,000 millionaires at the end of 2025.
A reason for the drop in the number of millionaires is that two of the TSP’s core stock funds declined in the first quarter of 2026. The C Fund, the TSP’s most popular fund, was down almost 5% in the first quarter of the new year. The S Fund was down about 4.6%. The other core stock fund, the I Fund, was up about 1.85%, but fewer TSP investors are heavily invested in this TSP Fund despite its high returns in 2025.
Another reason for the drop is probably due to a shrinking federal workforce. A number of federal employees have retired over the last 15 months. The federal civilian workforce has been reduced by roughly 230,000 people (about 10%) in this time. The decline has come from a mix of layoffs, attrition, early‑out/buyout offers, and non‑replacements, with the largest cuts concentrated in agencies such as Education, Agriculture, Housing and Urban Development, and some parts of the Treasury.
People who retire are obviously older. If they have been in the workforce for a longer time, they are the people who are likely to have had larger TSP accounts. Other retirees may also be taking required minimum distributions or making systemic withdrawals from their accounts with the volatile stock market in the first quarter of this year.
TSP millionaires have at least $1 million in their TSP accounts, a figure that has continued to climb over time as federal employees and annuitants ride the long‑term growth of the market and the unique advantages of the TSP. For a workforce of roughly 7.3 million active and separated participants, this means roughly 1 in every 40 TSP investors has already crossed the seven‑figure mark.
What the Millionaire Count Tells Us
The millionaire count is not just a headline number. It is a snapshot of how decades‑long participation, disciplined contributions, and the plan’s low‑cost structure can compound into life‑changing wealth.
Several trends stand out:
- The number of TSP millionaires has grown rapidly over the past decade, roughly tripling from about 64,000 in 2015 to nearly 185,000 at the end of the first quarter of 2026.
- The share of TSP millionaires relative to total participants reflects not only higher markets over time but also stronger participation and higher contribution rates.
- The TSP has reported that the FERS participation rate in the TSP (96.2%) and full matching rates (89.1%) are new plan highs.
For current employees, the takeaway is straightforward: the TSP is not just a “safe place to put money.” Over time, it is a wealth‑building engine that rewards those who contribute regularly, take full advantage of the government match, and keep fees low.
Why the TSP Fosters Millionaires
The TSP is not immune to market risk as we can see from the first quarter returns this year. The TSP has several structural features that make it easier for participants to grow large balances:
Low‑Cost Index‑style Funds
The core TSP funds—both the C, S, I, F, and G funds and the Lifecycle (L) funds—track the broad financial markets at some of the lowest expense ratios in the retirement‑plan universe. Typical total plan‑level fees are often in the 0.04% to 0.07% range, versus closer to 0.1%–0.5% or more in many private‑sector 401(k)s. That small difference in fees can easily add tens or even hundreds of thousands of dollars to an account over 25–30 years.
Generous Government Contributions
For FERS employees, the government adds 1% of basic pay automatically plus matches up to 5% of pay if the employee contributes enough. That means someone contributing 5% of an $80,000 salary gets a total of $8,000 in employer‑side contributions each year (1% automatic + 4% match). Over 30 years at modest market returns, that extra employer money can push an account deep into millionaire territory, even if the employee never increases their own contribution.
Disciplined Saving Behavior
Federal employees tend to be consistent savers. Many contribute at least enough to get the full match, and many go higher, especially as they near retirement. The TSP’s automatic payroll deduction makes it easy to treat retirement savings as a routine monthly expense, not something to “think about someday.”
How TSP Millionaires Compare With 401(k) Millionaires
The TSP’s millionaire count is impressive, but it is also worth some perspective.
The U.S. has far more 401(k) millionaires than TSP millionaires—well over 500,000 individuals with 401(k) balances of $1 million or more, according to recent tallies from Fidelity and others. The private‑sector 401(k) universe is much larger, with tens of millions of active participants, so it is not surprising that the absolute number of millionaires there is higher.
What stands out for federal employees is the ratio of millionaires to participants. The TSP has achieved a very high millionaire share relative to its total headcount, especially when compared to many typical 401(k) plans that have smaller employer matches and higher fees. In that sense, the TSP functions as a kind of defined‑contribution model—one that many private‑sector employers are urged to emulate.
A Reality Check for Retirees
For retirees, the TSP millionaire number is a reminder that the TSP is often the largest liquid asset in a retirement portfolio, alongside the FERS annuity and Social Security.
Some retirees may choose to keep their TSP as a long‑term investment vehicle, gradually withdrawing funds or using a systematic withdrawal strategy. Others may prefer to roll the TSP into a private IRA for more investment choices or estate‑planning flexibility. The right move depends on individual risk tolerance, tax situation, and estate goals.
Even for retirees who will not be “millionaires” in the TSP, the principles are the same: time, consistency, and low fees matter far more than chasing the latest hot stock or fund.
How Do You Stack Up?
TSP participants with the most years contributing to the TSP have the highest account balances in every category tracked by the TSP. That is not a surprise. Historically, time in the stock market has led to greater financial access.
Here are the latest data on account balances, the number of participants, and the average years of contributions for each category.
| Account Balance | Number of Participants | Average Years of Contributions |
| <$50k | 4,200,274 | 6.11 |
| $50k-$249k | 1,884,491 | 14.09 |
| $250k-$499k | 612,969 | 19.77 |
| $500k-$749k | 262,507 | 22.58 |
| $750k-$999k | 133,573 | 24.56 |
| ≥ $1 million | 184,532 | 27.93 |
| Total | 7,278,346 | 10.81 |
- The largest TSP balance as of April 1, 2026, is $9.30 mlllion. At the end of 2025, the largest TSP account was $9.96 million, so the market drop in the first quarter probably impacted all TSP investors to some extent.
- These figures do not include beneficiaries.
- The data do include rollovers from other qualified plans.
- Data include FERS, CSRS, and the Uniformed Services
The average TSP balance for FERS participants at the end of February 2026 was $221,681. For Uniformed Services, the average balance was $21,319, and for CSRS, the average balance was $243,725.
Looking Ahead
The rise of nearly 185,000 TSP millionaires is not guaranteed to continue; it depends on future markets, interest rates, and policy decisions. Still, the underlying formula is simple: contribute consistently, take full advantage of the government match, keep costs low, and stay invested.
For current federal employees and annuitants, the growing number of TSP millionaires is proof that the TSP is more than just a retirement savings account. It is a wealth‑building tool that can help turn a lifetime of federal service into a financially secure retirement.
The next TSP millionaire might very well be you—especially if you keep contributing, stay invested, and let time and compounding do their work.
Nearly 185,000 TSP millionaires prove the power of consistent saving, low fees, and the government match; current federal employees can join them by maxing contributions and staying invested.
Our congratulations to all TSP participants who have reached $1 million or more in their TSP accounts!
