1. What is the TSP Duration Calculator?

The TSP Duration Calculator estimates how many years your Thrift Savings Plan balance will last based on your current balance and annual withdrawal rate. This simple calculation helps with retirement planning.

2. How Does the Calculator Work?

The calculator uses the basic formula:

Where:

• \( Balance \) — Current TSP account balance in USD
• \( Annual\ Withdrawal \) — Yearly withdrawal amount in USD

Explanation: This calculation assumes no additional contributions, no investment growth, and constant withdrawal amounts. For more precise planning, consider consulting a financial advisor.

3. Importance of TSP Planning

Details: Understanding how long your TSP will last helps ensure you don't outlive your retirement savings. Federal employees and military members should carefully plan their TSP withdrawals.

4. Using the Calculator

Tips: Enter your current TSP balance and planned annual withdrawal amount. Both values must be positive numbers. The result shows how many years your TSP would last at this withdrawal rate.

5. Frequently Asked Questions (FAQ)

Q1: Does this account for investment growth?
A: No, this is a simple calculation that doesn't account for potential investment gains or losses in your TSP account.

Q2: What's a safe withdrawal rate from TSP?
A: Many financial planners recommend a 4% annual withdrawal rate as a starting point, but your specific situation may vary.

Q3: Should I include other retirement accounts?
A: For comprehensive planning, consider all retirement accounts (IRA, 401k, etc.) not just your TSP.

Q4: What about required minimum distributions?
A: Remember that RMDs (Required Minimum Distributions) begin at age 72 for most retirement accounts.

Q5: How accurate is this calculation?
A: This provides a basic estimate. For more accuracy, consider inflation, taxes, and changing withdrawal needs.