A growing number of federal employees are retiring with more than $1 million in their Thrift Savings Plan (TSP) accounts, a milestone once considered rare. New data from the Federal Retirement Thrift Investment Board (FRTIB) reveals that the number of TSP millionaires surged in the second quarter of 2025, rebounding strongly after a dip earlier in the year.
A Record-Breaking Quarter
According to TSP’s latest quarterly report, 171,023 federal employees now hold over $1 million in their retirement accounts. This marks a significant turnaround from Q1 of 2025, when market volatility caused a temporary decline in millionaire accounts.
The increase in TSP millionaires has been rapid when you consider that in March 2020, there were just 27,212 millionaires, which grew by over 500% to 171,023 in a little over five years. Despite this increase, millionaires still account for only 2.37% of all participants, while those with account balances under $50k account for nearly 60%.
What Sets These Savers Apart?
Time in the System: The average TSP millionaire has been contributing consistently for roughly 28 years. That kind of longevity allows compound interest to work its full magic. These are not overnight success stories; they’re decades in the making.
Aggressive, Yet Disciplined Investment Choices: Million-dollar account holders tend to invest heavily in the C Fund (which tracks the S&P 500), as well as the S and I Funds, which focus on small-cap and international stocks. They typically avoid parking large amounts in the ultra-conservative G Fund, especially during their early and mid-career years.
Consistent Contributions: TSP millionaires made steady contributions regardless of market conditions, often maximizing their annual deferrals and taking full advantage of agency matching contributions.
Resilience During Market Downturns: Many of today’s TSP millionaires stayed invested during periods of severe market stress. Rather than pulling out during downturns, they rebalanced and stayed the course.
By The Numbers
Balance >$50k
4,224,614 Participants (58.51%)
6.01 Avg Years of Contributions
Balance $50k-$249k
1,838,249 Participants (25.46%)
14.28 Avg Years of Contributions
Balance $250k-$499k
603,266 Participants (8.36%)
19.92 Avg Years of Contributions
Balance $500k-$749k
254,918 Participants (3.53%)
22.78 Avg Years of Contributions
Balance $750k-$999k
128,010 Participants (1.77%)
24.78 Avg Years of Contributions
Balance ≥$1 million
171,023 Participants (2.37%)
28.13 Avg Years of Contributions
Looking Ahead
The rise in TSP millionaire accounts reflects not just market performance, but decades of smart, patient investing. While not every federal employee will cross the million-dollar threshold, many can achieve a secure retirement by following similar principles: start early, stay consistent, and invest for growth over time. For help maximizing your TSP strategy, reach out to a Federal Retirement Consultant (FRC®) who understands your unique benefits.
