Secrets Behind The Growing Number Of TSP Millionaires

Number of TSP Millionaires Grows Rapidly Over Time

The Thrift Savings Plan (TSP) provides a path to a secure retirement for federal employees. While the defined annuity under FERS is a very valuable benefit often not available to most Americans, the Thrift Savings Plan may provide the difference between a minimal retirement or one that provides many more options to enjoy your later years in life.

While the argument is often made that salaries in the private sector are higher, the federal workforce has at its fingertips a way to accumulate wealth that provides a substantial retirement income—at least for those with the knowledge and discipline to take maximum advantage of this program.

Here are some TSP statistics that every federal employee should keep in mind—especially those who are still relatively new to the federal workforce.

In March 2020, there were 27,212 TSP millionaires, which grew to 171,023 by June 2025. This is a growth of over 500% in the number of millionaires in just over five years.

The largest quarterly increase in TSP millionaires occurred between March 2020 and June 2020, with the number rising from 27,212 to 45,219 — an increase of 66%. Another significant increase was between December 2020 and March 2021, where the number of millionaires grew from 75,420 to 84,808.

The number of TSP millionaires is now at its highest point, with 171,023 participant millionaires as of the end of June 2025. The average years of contributions for TSP millionaires have remained stable over the last five years, hovering around 28 years. This indicates a strong correlation between long-term contributions and achieving millionaire status in the TSP.

Growth in the Stock Market and Even Greater Growth in TSP Millionaires

From March 2020 to June 2025, there was a more than sixfold increase in the number of TSP millionaires, from 27,212 to 171,023 (528.5%). The growth in the stock market was significant during this time, but the increase in TSP millionaires was even greater.

Here’s a breakdown of how the S&P 500 performed compared to the growth of TSP millionaires:

Quarter EndingS&P 500 Index (Approx.)% Change from March 2020TSP Millionaires% Change from March 2020Mar 2020~2,600—27,212—Mar 2021~3,970+52.7%84,808+211.7%Mar 2022~4,530+74.2%100,364+268.7%Mar 2023~4,100+57.7%88,265+224.4%Mar 2024~5,250+101.9%134,932+395.9%Jun 2025~6,200+138.5%171,023+528.4%

While the number of TSP millionaires has grown, the majority of participants still have account balances below $50,000.

The proportion of participants with balances below $50,000 has remained significant, with over 4 million participants in this category as of June 2025.

Account Balances, Years of Contributions, and Number of Participants in Each Category

Here is the breakdown for the TSP, displaying the number of participants in a range of account balances.

BalanceNumber of ParticipantsAverage Years of Contributions4,224,6146.01$50k-$249k 1,838,24914.28$250k-$499k 603,26619.92$500k-$749k 254,91822.78$750k-$999k 128,01024.78≥ $1 million 171,023 28.13Total7,220,08010.73Source: FRTIB

Approximately 2.37% of all TSP participants now qualify as TSP millionaires.

The largest account balance in the TSP is now $9.38 million. While that is impressive, the largest account balance at the end of 2021 was $10,975,527. Perhaps this person retired. Perhaps the person died, and the money was passed on to multiple beneficiaries. Perhaps the stock allocation in this portfolio dropped and has not recovered. That information is not available.

The data include FERS, CSRS, and Uniformed Services participants. Participants with civilian and Uniformed Services accounts grouped together to reflect total TSP investment per individual. Note that this does not include TSP beneficiaries.

As one would expect, the number of years a participant has been contributing goes up in each account balance category.

The TSP millionaires’ data indicate the best way for federal employees to grow wealth is to:

Investors with more than $1 million have an average federal service of 28.13 years.

Do You Have What It Takes? Success Factors for TSP Millionaires

Not everyone will become a TSP millionaire. Most federal employees will never become a TSP millionaire. It is not easy. It requires discipline and tenacity.

How does a federal employee reach millionaire status through the TSP?

Do these millionaires have a secret formula?

If you are not yet one of these millionaires, do you have the ability to follow these “secrets” to financial success in the TSP?

Career Longevity

The first category necessary to become a TSP millionaire is working for the federal government for a number of years. Most of the current millionaires have an average of 25–30+ years in the program.

A federal employee can roll money in from other qualified retirement plans. This means that some TSP millionaires may have rolled money into the TSP from an earlier career. So, if you are now a federal employee or thinking of becoming one and have a plan that qualifies, you may be able to reach this plateau ahead of time by rolling money into the TSP.

Contributing Steadily

A typical TSP millionaire is a career member of the federal service contributing steadily over decades. He or she took advantage of compounding growth by staying invested through the inevitable bull and bear markets that occur.

Most contributed consistently, often at or near the IRS maximum contribution limits. In 2024, the limit was $23,000 ($30,500 if age 50+ with catch-up contributions), and in 2025, it is even higher.

It is easier to achieve this level by contributing early in your career. With promotions and salary increases, continue to increase your contributions as your salary increases.

Don’t Skimp on Contributions Or Stock Funds

TSP millionaires typically allocated a significant portion to the stock funds in the TSP. These are:

C Fund (tracks the S&P 500)

S Fund (small and mid-sized U.S. companies)

I Fund (international stocks)

These funds are often more volatile, meaning they go up or down more than the other TSP funds. Over time, they also have higher long-term returns. This means that your investments will provide more money for your TSP account during the bull markets.

Control Emotional Investing

TSP millionaires have rarely reacted emotionally to market downturns. During events like the 2008 financial crisis or COVID-19 crash, they kept their money invested in stock funds, continued contributing, and did not switch to conservative funds like the G Fund (which never loses money but gains less during a bear market).

Some TSP participants withdraw money as the market starts to go down. Some withdraw money after it has already gone down, as it is hard to watch your TSP balance drop, but the results are usually much better for your TSP balance by the time you retire.

Avoid Taking Loans or Making Withdrawals

Avoid taking loans or making withdrawals from your TSP. This is easy to say and hard to do.

A bigger house will give you a more pleasant life with more room and more amenities. A new car is more reliable, has more up-to-date technology, and may be more comfortable. Your friends will admire your taste and good fortune with the new house or the new car.

To make these purchases, it may be that the only thing you have to do is withdraw some of your retirement funds. It may be tempting.

We have all been there with the temptation staring us in the face. There may be a valid reason for withdrawing money, but many of the reasons for the withdrawal are items like a house or a new car. To reach millionaire status, keep the temptations at bay.

TSP millionaires often avoided borrowing from their accounts, which can interrupt compounding growth.

They also typically did not take early withdrawals, keeping their money invested as long as possible.

Will You Become a TSP Millionaire?

Most people have more control over reaching this plateau than they realize they have. Keep these factors in mind if you want to join the increasing number of TSP millionaires. It is not easy. Most people will not follow the advice. But that is what is usually takes to reach the millionaire plateau.