Year 1: Withdrawal: -, Starting Balance: -, Ending Balance: –
Understanding TSP Withdrawals and This Calculator
The Thrift Savings Plan (TSP) is a retirement savings plan for federal employees and members of the uniformed services. When you reach retirement age or separate from service, you have several options for accessing your TSP funds. This calculator helps you understand the potential longevity of your TSP balance based on your desired withdrawal amount, the number of years you plan to withdraw, and an estimated investment growth rate.
It's crucial to remember that this calculator provides an estimate. Actual investment returns can vary significantly, and your TSP balance is subject to market fluctuations. Taxes, fees, and potential changes in withdrawal strategies are not factored into this basic calculation.
How the Calculator Works:
The calculator simulates year-by-year withdrawals from your TSP balance. For each year, it performs the following steps:
Start with the current balance.
Subtract the desired annual withdrawal amount.
Apply the estimated annual investment growth rate to the remaining balance.
The result is the balance at the end of the year, which becomes the starting balance for the next year.
The calculation continues until the balance is depleted or the specified number of withdrawal years has passed.
Key Inputs Explained:
Current TSP Balance: The total amount of money currently in your TSP account.
Desired Annual Withdrawal Amount: The fixed amount you aim to withdraw from your TSP each year.
Number of Years to Withdraw: The period over which you plan to make withdrawals.
Estimated Annual Investment Growth Rate: The average annual return you anticipate from your TSP investments. This is a crucial variable; a higher growth rate can make your money last longer, while a lower rate or negative returns can deplete your balance faster.
Interpreting the Results:
Remaining Balance: Shows the projected balance in your TSP account after all withdrawals are made or when the funds are depleted.
Total Withdrawn: The cumulative sum of all withdrawals made over the specified period.
Estimated Years Sustained: Indicates how many years your TSP balance could potentially support your desired annual withdrawals. This might be less than, equal to, or even more than the "Number of Years to Withdraw" if the funds last longer.
Withdrawal Details Per Year: A breakdown showing the starting balance, the withdrawal amount, and the ending balance for each year of the simulation.
Important Considerations:
Taxes: TSP withdrawals are typically taxed as ordinary income. This calculator does not account for taxes, which will reduce the net amount you receive.
Inflation: The calculator assumes a fixed withdrawal amount. In reality, you may need to increase your withdrawals over time to maintain your purchasing power due to inflation.
Investment Volatility: Market returns are not guaranteed. Periods of market downturn can significantly impact your balance and the longevity of your withdrawals.
TSP Fees: While TSP fees are generally low, they can affect your overall returns.
Withdrawal Options: This calculator models a simple fixed annual withdrawal. The TSP offers various withdrawal options (e.g., lump-sum payments, monthly payments, lifecycle funds) that have different implications. Consult TSP literature for details.
Professional Advice: This calculator is a tool for estimation and should not be considered financial advice. Always consult with a qualified financial advisor to discuss your specific retirement planning needs.
function calculateTSPWithdrawal() {
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var withdrawalAmount = parseFloat(document.getElementById("withdrawalAmount").value);
var yearsOfWithdrawal = parseInt(document.getElementById("yearsOfWithdrawal").value);
var annualGrowthRate = parseFloat(document.getElementById("annualGrowthRate").value) / 100;
var resultElement = document.getElementById("result");
var remainingBalanceElement = document.getElementById("remainingBalance");
var totalWithdrawnElement = document.getElementById("totalWithdrawn");
var yearsSustainedElement = document.getElementById("yearsSustained");
var withdrawalListElement = document.getElementById("withdrawalList");
// Clear previous results
remainingBalanceElement.textContent = "Remaining Balance: -";
totalWithdrawnElement.textContent = "Total Withdrawn: -";
yearsSustainedElement.textContent = "Estimated Years Sustained: -";
withdrawalListElement.innerHTML = "";
if (isNaN(currentBalance) || isNaN(withdrawalAmount) || isNaN(yearsOfWithdrawal) || isNaN(annualGrowthRate)) {
resultElement.style.color = "red";
resultElement.textContent = "Please enter valid numbers for all fields.";
return;
}
if (currentBalance <= 0 || withdrawalAmount <= 0 || yearsOfWithdrawal = withdrawalAmount && year 0) {
balance *= (1 + annualGrowthRate);
} else {
balance = 0; // Ensure balance doesn't go below zero due to growth calculation
}
detailsHtml += "
";
sustainedYears = year;
year++;
}
// Handle case where funds run out before desired years
if (balance < withdrawalAmount && sustainedYears 0) { // There's still some balance left
var finalWithdrawal = balance;
totalWithdrawn += finalWithdrawal;
detailsHtml += "
";
balance = 0;
}
sustainedYears = year; // The year the funds ran out
} else if (balance >= withdrawalAmount && year > yearsOfWithdrawal) {
// Funds still remain after the specified number of years
sustainedYears = yearsOfWithdrawal; // They lasted at least this long
// Calculate final balance after the last planned withdrawal and growth
var finalPlannedWithdrawal = withdrawalAmount;
balance -= finalPlannedWithdrawal;
totalWithdrawn += finalPlannedWithdrawal;
if (balance > 0) {
balance *= (1 + annualGrowthRate);
} else {
balance = 0;
}
detailsHtml += "