1. What is the TSP Annuity Calculator?

The TSP (Thrift Savings Plan) Annuity Calculator estimates your monthly annuity payment based on your account balance and the annuity factor. It helps federal employees plan their retirement income.

2. How Does the Calculator Work?

The calculator uses the TSP annuity formula:

Where:

• \( Balance \) — Your TSP account balance in USD
• \( Annuity\ Factor \) — Factor based on your age and interest rates (unitless)

Explanation: The annuity factor represents how much monthly income each dollar of your TSP balance can generate based on current interest rates and your life expectancy.

3. Importance of Annuity Calculation

Details: Calculating your potential annuity payments helps in retirement planning by showing how much guaranteed monthly income your TSP balance could provide.

4. Using the Calculator

Tips: Enter your current TSP balance in USD and the appropriate annuity factor (available from TSP annuity estimates). 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 your age and current interest rates when you request an annuity estimate.

Q2: Are TSP annuity payments guaranteed?
A: Yes, TSP annuities provide guaranteed monthly payments for life or a specified period, depending on the option you choose.

Q3: Can I change my annuity after purchase?
A: No, TSP annuity options cannot be changed once payments begin, so careful planning is essential.

Q4: How does interest rate affect my annuity?
A: Higher interest rates at the time of purchase generally result in higher monthly payments for the same account balance.

Q5: Are there different types of TSP annuities?
A: Yes, TSP offers single life, joint life, and term certain annuities with different payment structures.