The Increasing Number of TSP Billionaires
The Thrift Savings Plan (TSP) offers a secure retirement option for federal employees. While defined pensions under FERS provide valuable benefits not commonly found elsewhere, savings plans can bridge the gap, offering more substantial retirement income or options for a comfortable later life.
There’s an ongoing discussion about whether private sector salaries outpace those in the federal workforce. However, federal employees possess a means to generate wealth that ensures a decent retirement income, allowing them to maximize their benefits from the program.
Here are some key TSP statistics that all federal employees, particularly newcomers, should be aware of.
In March 2020, there were 27,212 TSP billionaires. By June 2025, that number surged to 171,023. This represents a spectacular 500% growth in just over five years.
The most significant quarterly increase in TSP billionaires occurred between March and June 2020, jumping from 27,212 to 45,219—a rise of 66%. Another notable surge took place from December 2020 to March 2021, when billionaires increased from 75,420 to 84,808.
The current count of TSP billionaires stands at an all-time high of 171,023 as of late June 2025. Over the past five years, the average number of years of contributions from these billionaires has remained consistent at around 28 years, indicating a strong link between long-term investments and achieving billionaire status in TSP.
Stock Market Trends and TSP Billionaires
From March 2020 to June 2025, the number of TSP billionaires increased more than sixfold, from 27,212 to 171,023 (about 528.5%). While the stock market saw impressive growth during this time, the increase in TSP billionaires was even more pronounced.
Here’s a snapshot of the S&P 500 compared to TSP billionaire growth:
| End of Quarter | S&P 500 Index (approx.) | Change from March 2020 | TSP Millionaires | Change from March 2020 |
|---|---|---|---|---|
| March 2020 | ~2,600 | – | 27,212 | – |
| March 2021 | ~3,970 | +52.7% | 84,808 | +211.7% |
| March 2022 | ~4,530 | +74.2% | 100,364 | +268.7% |
| March 2023 | ~4,100 | +57.7% | 88,265 | +224.4% |
| March 2024 | ~5,250 | +101.9% | 134,932 | +395.9% |
| June 2025 | ~6,200 | +138.5% | 171,023 | +528.4% |
- The increase in TSP billionaires is notable, yet the majority of participants have account balances below $50,000.
- As of June 2025, over four million participants had balances in this category.
Account Balances and Participation Breakdown
Below is a summary of TSP participation based on account balances:
| Balance | Number of Participants | Average Years of Contribution |
| Less than $50K | 4,224,614 | 6.01 |
| $50K – $249K | 1,838,249 | 14.28 |
| $250K – $499K | 603,266 | 19.92 |
| $500K – $749K | 254,918 | 22.78 |
| $750K – $999K | 128,010 | 24.78 |
| ≥ $1 Million | 171,023 | 28.13 |
| Total | 7,220,080 | 10.73 |
Currently, around 2.37% of TSP participants qualify as billionaires. The largest account balance is an impressive $9.38 million, although the highest recorded in 2021 was $10,975,527. It’s possible that the account holder is retired or has passed away, leading to the funds being distributed among beneficiaries. The exact details, such as portfolio allocation, aren’t known.
The data encompasses FER, CSR, and unified service participants, which reflects individual investments in TSP while excluding beneficiaries.
As anticipated, those who have contributed for longer periods tend to be in higher account balance categories. Insights from TSP billionaires point out effective methods for federal employees to build their wealth.
Investors with over $1 million average 28.13 years in federal service.
Keys to Becoming a TSP Billionaire
It’s important to note that not everyone will reach billionaire status through TSP. Most federal employees do not, and pursuing this goal requires dedication and a strategic mindset.
- What strategies do federal employees employ to achieve billionaire status?
- Do these billionaires possess secret strategies?
- If you haven’t reached billionaire status yet, can you adopt these “secrets” for financial success through TSP?
Career Longevity
A primary factor for becoming a TSP billionaire is extensive experience—most current billionaires have participated in the program for over 25-30 years.
Federal employees can transfer funds from other qualified retirement plans into TSP, meaning some TSP billionaires may have rolled over funds from previous employment. So, if you’re considering a federal employment path, having a qualified plan might help you escalate your standing.
Consistent Contributions
Typical TSP billionaires are career federal employees who have contributed steadily for decades, managing to ride the waves of the market effectively.
They usually contribute near the maximum IRS limits. For instance, in 2024, the limit was $23,000 ($30,500 for catch-up contributions for those over 50), with even higher limits expected in 2025.
Starting contributions early in one’s career often means healthier contributions as salaries rise.
Investing in Stock Funds
Many TSP billionaires allocate a significant portion of their investments in stock funds, such as:
- C Fund (mirroring the S&P 500)
- S Fund (focusing on smaller U.S. companies)
- I Fund (international investments)
These stock funds generally exhibit greater volatility but tend to yield better long-term returns, meaning they can enhance your TSP portfolio in a bull market.
Managing Emotional Investments
Billionaires in the TSP remain unflappable during market downturns. During crises like the 2008 financial crash and the one triggered by COVID-19, they kept investing in stock funds and continued their contributions, opting not to switch to conservative funds, which are safer but yield lower returns in bearish markets.
While some participants withdraw funds when markets dip, which is understandable given the instinct to safeguard savings, this often leads to a worse outcome in the long term.
Avoiding Loans or Withdrawals
Avoiding loans or withdrawals from TSP is critical, though it can be easy to justify such moves.
Purchasing a larger home or a new car can seem appealing, and it may be tempting to withdraw from retirement savings to afford such luxuries. The allure of these purchases can be strong. But for those aspiring to billionaire status, resisting that temptation is key.
- TSP billionaires typically refrain from borrowing against their accounts, valuing the growth that compound interest provides.
- They usually do not withdraw early and instead prioritize long-term investment growth.
Can You Become a TSP Millionaire?
Many people have more control in reaching this milestone than they might realize. For those aspiring to join the ranks of TSP billionaires, keeping these principles in mind is essential. It’s not an easy path, and many don’t follow all the necessary advice. But consistently doing what’s needed can help you reach that billionaire level.
