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Is Thrift Savings Plan A Pension?

No. It is not a pension.

TSP is a retirement savings plan that has costs and risks and must be managed.

How is TSP different from a pension? 

An individual-account retirement savings plan like the Thrift Savings Plan differs from most other kinds of pensions in several ways, including:

  • No guarantee that a fixed monthly amount is available for the rest of your life.
  • Risks associated with investment choices and market volatility. The need to manage contributions, payouts, loans, withdrawals and distributions throughout your career.

What are some similarities between a pension and TSP?

Contributions to a Thrift Savings Plan are made by the employee and matched by the government. Unlike pensions, withdrawals from the plan must begin at age 70.

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