Are You Making the Most of TSP at Every Stage of Your Career?

Hi Friends, Mike Lanway here with AllAboutFERS.com

I want to talk to you today about the Thrift Savings Plan (TSP)—but not just in general. I want to talk about how TSP fits into your real life, at every stage of your federal career. Because how you use this benefit changes over time, and the opportunities you have in your 30s aren’t the same ones you have in your 50s or 60s.

So whether you’re just getting started or eyeing retirement in the next few years, let’s walk through how to make the most of TSP, no matter where you are.

The Foundation: Agency Matching

If you’re in FERS, your agency is ready to match your TSP contributions. But only if you’re contributing enough to trigger that match.

• If you put in nothing, they’ll still contribute 1% of your pay.
  
• If you put in 5%, they’ll add a total of 5% (1% automatic + 4% matching).
  

That’s a 100% return on your first 5%—and it’s yours to keep. If you’re not hitting that number yet, this is your first opportunity. Work your budget. Make room for the match. You’ll be glad you did.

Age 50+: Time for “Catch-Up” Contributions

Once you turn 50, TSP opens the door a little wider. You can now make catch-up contributions, which let you put in more than the standard limit.

This isn’t just a nice option. It’s a powerful opportunity to ramp up your retirement savings at a time when:

• Your income may be higher
  
• Your expenses may be more predictable
  
• And your retirement timeline is getting clearer
  

I always say—if you’re over 50, don’t leave this money on the table. Even a few extra thousand per year can turn into tens of thousands by retirement, especially with compounding.

Age 60–63: Even More Access

Between ages 60 to 63, TSP lets you maximize your contributions one more time before retirement. There’s a narrow window here where you can put in even more than the regular catch-up limit.

This is your final sprint—the last chance to shovel as much money as possible into a tax-advantaged account with guaranteed agency contributions.

And remember, every dollar you put in now can:

• Grow tax-deferred
  
• Boost your peace of mind
  
• Be used to cover real-life retirement expenses later on
  

The Bigger Picture: Why Budgeting Matters

TSP is a tool. But to use it well, you have to build your budget around it.

You don’t have to max it out every year. But you do need a clear sense of what you’re putting in, what your match is, and how your contributions change as you age. A few simple shifts in your monthly budget can lead to lifelong income.

And don’t forget—you’re participating in one of the largest retirement savings programs in the country. That shared system creates economic power. That power creates growth. And that growth becomes your future.

Get Started, Stay Informed

Wherever you are in your career—25 or 62—this benefit is here for you. But it only works if you take the time to understand it and make the most of it.

If you need help putting the pieces together, we’ve built tools to walk you through it. Go to AllAboutFERS.com to explore the opportunities available to you, including how your budget, benefits, and long-term goals can all work together.

Because at the end of the day, this isn’t just about numbers. It’s about peace of mind. It’s about knowing you’ve done what you can to take care of yourself and your future.

Take care,
Mike Lanway