1. What is a TSP Annuity?

A TSP (Thrift Savings Plan) annuity is a guaranteed monthly payment you can purchase with your TSP account balance. It provides a steady income stream in retirement.

2. How Does the Calculator Work?

The calculator uses the annuity formula:

Where:

• \( \text{Balance} \) — Your TSP account balance in USD
• \( \text{Annuity Factor} \) — Factor based on your age, interest rates, and payment option

Explanation: The annuity factor is determined by the TSP and varies based on current interest rates and your chosen payment options.

3. Importance of Annuity Calculation

Details: Calculating your potential annuity payments helps with retirement planning and understanding how your TSP balance translates to monthly income.

4. Using the Calculator

Tips: Enter your current TSP balance and the annuity factor provided by TSP for your specific situation. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find my annuity factor?
A: The TSP provides annuity factors based on current interest rates and your chosen payment options when you apply for an annuity.

Q2: Are annuity payments fixed?
A: It depends on the annuity option you choose. Some provide fixed payments, while others may have cost-of-living adjustments.

Q3: Can I change my annuity after purchase?
A: Generally no, annuity purchases are irrevocable, so careful calculation and planning are essential.

Q4: How does interest rate affect my annuity?
A: Higher interest rates when you purchase your annuity typically result in higher monthly payments.

Q5: Are there different types of TSP annuities?
A: Yes, TSP offers several annuity options including single life, joint life, and various payment period guarantees.