Thrift Savings Plan (TSP) Retirement Calculator
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Thrift Savings Plan (TSP) Retirement Calculator
Your projected TSP balance at retirement will appear here.
Understanding Your TSP Retirement Projection
The Thrift Savings Plan (TSP) is a retirement savings and investment plan offered to Federal employees and members of the uniformed services. This calculator helps you project your TSP balance at retirement based on your current savings, contributions, expected investment growth, and inflation.
How the Calculation Works
The calculator uses a compound interest formula, adjusted for yearly contributions and inflation, to estimate your future TSP balance. The core of the calculation involves projecting the growth of your current balance and the future value of your annual contributions.
Key Factors:
-
Current Age & Retirement Age: These determine the number of years your investments have to grow.
-
Current TSP Balance: This is your starting point.
-
Annual Contributions: The total amount (your contributions plus any agency match) you plan to add each year.
-
Expected Annual Rate of Return: The average annual percentage gain you anticipate from your TSP investments. This is a crucial variable; actual returns can vary significantly.
-
Expected Annual Inflation Rate: This accounts for the decrease in purchasing power of money over time. We use it to present a "real" return, showing what your money might buy in the future.
The formula used is an iterative projection: For each year until retirement, the current balance grows by the expected annual return, and then the annual contribution is added. The final projected balance is also presented in today's dollars by adjusting for inflation.
Example Scenario
Let's consider Sarah, who is 35 years old and plans to retire at 65 (30 years from now). She currently has $75,000 in her TSP account and contributes $12,000 per year (including her agency's match). She anticipates an average annual return of 7.5% and an inflation rate of 3.0%.
Using this calculator, Sarah can input these values to see a projected TSP balance at age 65. The result will show both the nominal future value (the actual dollar amount) and an estimated "real" value in today's purchasing power.
Important Considerations
This calculator provides an estimate and is for informational purposes only. It does not constitute financial advice. Actual investment returns can differ greatly due to market fluctuations. Consider consulting a financial advisor for personalized planning. The TSP also has specific rules regarding withdrawals and taxes in retirement that are not factored into this basic projection.
function calculateTspRetirement() {
var currentAge = parseFloat(document.getElementById("currentAge").value);
var retirementAge = parseFloat(document.getElementById("retirementAge").value);
var currentTspBalance = parseFloat(document.getElementById("currentTspBalance").value);
var annualContributions = parseFloat(document.getElementById("annualContributions").value);
var expectedAnnualReturn = parseFloat(document.getElementById("expectedAnnualReturn").value) / 100; // Convert percentage to decimal
var annualInflation = parseFloat(document.getElementById("annualInflation").value) / 100; // Convert percentage to decimal
var resultElement = document.getElementById("result");
resultElement.innerHTML = ""; // Clear previous results
// Input validation
if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(currentTspBalance) || isNaN(annualContributions) || isNaN(expectedAnnualReturn) || isNaN(annualInflation)) {
resultElement.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (currentAge 90) {
resultElement.innerHTML = "Current age must be between 18 and 90.";
return;
}
if (retirementAge 100) {
resultElement.innerHTML = "Target retirement age must be between 50 and 100.";
return;
}
if (retirementAge <= currentAge) {
resultElement.innerHTML = "Target retirement age must be after current age.";
return;
}
if (currentTspBalance < 0 || annualContributions < 0) {
resultElement.innerHTML = "TSP balance and contributions cannot be negative.";
return;
}
var yearsToRetirement = retirementAge – currentAge;
var projectedBalance = currentTspBalance;
var nominalBalance = currentTspBalance; // For nominal value calculation
// Calculate projected balance year by year
for (var i = 0; i < yearsToRetirement; i++) {
// Calculate growth on current balance
nominalBalance += nominalBalance * expectedAnnualReturn;
// Add annual contributions
nominalBalance += annualContributions;
}
// Calculate the real value of the final balance in today's dollars
// Using the formula: Real Value = Nominal Value / (1 + Inflation Rate)^Number of Years
projectedBalance = nominalBalance / Math.pow((1 + annualInflation), yearsToRetirement);
// Format results for display
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0, // No cents for simplicity in this context
maximumFractionDigits: 0
});
var nominalFormatted = formatter.format(nominalBalance);
var realFormatted = formatter.format(projectedBalance);
resultElement.innerHTML =
"Projected TSP Balance at Retirement (" + retirementAge + "): " +
"
Nominal Value: " + nominalFormatted + "" +
"
Estimated Real Value (in today's dollars): " + realFormatted + "";
}