An increasing number of federal workers are entering retirement with seven-figure Thrift Savings Plan (TSP) balances — a milestone that was once exceptionally rare. Newly released figures from the Federal Retirement Thrift Investment Board (FRTIB) show a sharp uptick in TSP millionaires during the second quarter of 2025, marking a strong rebound from a downturn earlier this year.
A Rebound Quarter
As of the latest report, 171,023 federal employees now have TSP account balances exceeding $1 million. This marks a sharp reversal from the first quarter of 2025, when market volatility caused a dip in millionaire account totals.
To put the growth into perspective, in March 2020, there were just 27,212 TSP millionaires. In a little over five years, that number has soared by more than 500%. Still, millionaire participants make up just 2.37% of all TSP account holders, while nearly 60% have balances under $50,000.
By The Numbers
Balance >$50k
4,224,614 Participants (58.51%)
6.01 Avg Years of Contributions
$50k-$249k
1,838,249 Participants (25.46%)
14,28 Avg Years of Contributions
$250k-$499k
603,266 Participants (8.36%)
19.92 Avg Years of Contributions
$500k-$749k
254,918 Participants (3.53%)
22.78 Avg Years of Contributions
$750k-$999k
128,010 Participants (1.77%)
24.78 Avg Years of Contributions
≥$1 million
171,023 Participants (2.37%)
28.13 Avg Years of Contributions
What Sets TSP Millionaires Apart?
Long-Term Participation
Most TSP millionaires have been investing consistently for nearly three decades — on average, 28 years. The power of compounding over such a long timeframe plays a crucial role in building significant wealth.
Growth-Oriented Asset Allocation
High-balance TSP holders typically allocate a larger share of their portfolio to the C Fund (mirroring the S&P 500), along with the S and I Funds, which track small-cap and international stocks. They generally steer clear of the G Fund, especially in the earlier stages of their careers.
Steady Contributions
Rather than timing the market, these investors maintain consistent contributions, often maxing out their deferrals and capturing the full value of agency matching funds.
Patience Through Volatility
A defining trait of TSP millionaires is their willingness to stay invested during downturns. Many rebalanced portfolios rather than panic-selling during past market drops, positioning themselves for future gains.
Building Toward a Secure Retirement
The growing number of TSP millionaires underscores the value of disciplined, long-term investing and the strength of the federal retirement system when used effectively. While few will reach the million-dollar mark overnight — or even at all — federal employees can still position themselves for a strong retirement by following smart practices: start early, contribute consistently, and invest for growth.
For help refining your TSP strategy, consider working with a Federal Retirement Consultant (FRC®) who can provide guidance tailored to your unique benefits and career trajectory.
