For federal employees, the TSP is a powerful retirement benefit. With low fees, government backing, and a variety of investment options, it offers a strong foundation for growing and protecting your savings.
The G Fund is unique to the TSP, providing stability through U.S. Treasury securities, making it a reliable anchor for your portfolio, especially as retirement nears.
But “safe” doesn’t mean hands-off. Stock-focused funds like the C, S, or I Funds can fluctuate significantly, while the G Fund’s conservative returns may lag behind inflation over time.
Looking at 2025 performance so far, the I Fund has been the top performer overall. In October, the C Fund led monthly returns with 2.34%, while the S Fund returned 1.16% and is up 12.47% for the year, behind the C Fund’s 17.49% gain. Among the Lifecycle (L) Funds, the L 2027 Fund posted a 2025 return of 20.40%, delivering higher gains than the L 2055, L 2060, and L 2065 Funds.
G Fund:
0.36% October
3.72% YTD
4.47% 12 Month
F Fund:
0.62% October
6.80% YT
6.17% 12 Month
C Fund:
2.34% October
17.49% YTD
21.41% 12 Month
S Fund:
1.16% October
12.47% YTD
17.07% 12 Month
I Fund
2.13% October
28.01% YTD
24.37% 12 Month
A few practical tips:
- If you’re early in your career, a higher stock allocation can help capture long-term growth.
- If retirement is near, consider shifting toward more conservative funds like the G or F Fund or the L-Income Fund.
- Review and rebalance regularly to keep your portfolio aligned with your goals and risk tolerance.
The TSP is a valuable tool, but making sure your allocations match your timeline and comfort with risk can make a significant difference in your retirement outcomes. A Federal Retirement Consultant (FRC®) can give you a complimentary analysis and tailor a plan to meet your retirement goals.
